Independent Bank, the parent company of Rockland Trust Company, has signed an agreement to acquire Blue Hills Bancorp, the parent company of Blue Hills Bank, for nearly $726.5m.
Under the terms of the agreement, every Blue Hills Bancorp stockholder will receive 0.2308 Independent common stock and $5.25 in cash for each share.
Independent is planning to issue around 6.2 million shares of its common stock for this Blue Hills acquisition.
Founded in 1871, Blue Hills Bank currently operates 11 bank branches. It had $2.7bn in total assets, $2.3bn in loans and $2.1bn in deposits as of 30 June 2018.
Once the merger is complete, along with Rockland Trust’s previously announced acquisition of The Milford National Bank & Trust Company, the combined entity is expected to have more than $11bn in assets with the largest deposit share in the state of Massachusetts.
Independent president and CEO and the Rockland Trust CEO Christopher Oddleifson said: “Our transaction with Blue Hills Bank is a natural fit and is consistent with our strategy of acquiring banks in overlapping and adjacent markets.
“Blue Hills Bank is a strong, well run, growing company with a tremendous franchise. This acquisition will strengthen the position of Rockland Trust in Eastern Massachusetts and also permit us to expand onto Nantucket Island.”
Blue Hills Bank president and CEO William Parent said: “This transaction creates a combined company with growth potential and considerable franchise value.
“We are pleased to join Rockland Trust, a best in class partner that will benefit our customers, employees and the communities we serve while also providing an attractive return to our shareholders.”
The Blue Hills acquisition is expected to complete in the first half of next year, subject to customary closing conditions including regulatory and stockholder approvals.
Following the completion of the deal, Blue Hills Bancorp will appoint three directors on Independent board of directors.