Enterprise Bancorp to merge into regional lending peer Independent Bank in $562 mln deal

Independent Bank (Massachusetts)

09/12/2024 13:54

Dec 9 (Reuters) - Enterprise Bancorp  EBTC.O  and
Independent Bank  INDB.O , the parent of Rockland Trust, have
agreed to merge in a cash-and-stock deal valued at $562 million,
they said on Monday, as regional lenders continue to consolidate
their operations.
    Massachusetts-based Enterprise will merge into Independent
and its subsidiary Enterprise Bank will merge into Rockland
Trust, the companies said.
    Enterprise shareholders will receive 0.60 shares of
Independent's common stock and $2.00 in cash for each share of
Enterprise's common stock they hold.
    Regional lenders, at the heart of last year's banking
crisis, have been cutting more deals to shore up their balance
sheets and compete with rivals, extending a wave of
consolidation in the sector that may attract anti-trust
scrutiny.
    Tie-ups lower banks' cost of capital and allow acquirers to
grow and diversify deposits, a key source of funding for
lenders.
    Michigan-based bank Independent anticipates issuing about
7.5 million shares of its common stock and paying an aggregate
amount of $27.1 million in cash in the merger. 
    The lender also expects the merger to add about 16% to its
earnings per share in 2026. It plans to raise approximately $250
million in subordinated debt prior to the transaction closing.

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Maju Samuel)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))