People’s United Financial has signed an agreement to acquire United Financial Bancorp in an all-stock transaction valued at around $759m.
United Financial Bancorp is the parent company of Connecticut-headquartered United Bank. With around $7.3bn in assets, United Bank has around 60 branch locations concentrated across Central Connecticut and Western Massachusetts.
It offers consumer banking, commercial, small business, wealth management services.
United Financial Bancorp acquisition: Details
Under the terms of the agreement, United Financial Bancorp shareholders will receive 0.875 shares of People’s United Financial stock for each share.
People’s United expects that the transaction to be $0.07 accretive to earnings per common share.
People’s United Financial chairman and CEO Jack Barnes said: “With the fourth largest deposit market share in the combined Hartford and Springfield market, a complementary array of commercial and retail capabilities and a shared legacy of community giving, United will solidify our presence in the Central Connecticut market and strengthen our franchise in Western Massachusetts.”
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The United Financial Bancorp acquisition is expected to complete in the fourth quarter of this year.
The completion of the deal is subject to regulatory consents, approval of United Financial Bancorp shareholders and other customary closing conditions.
The latest move follows the acquisition of BSB Bancorp in April this year. People’s United Financial acquired BSB Bancorp, the parent of Belmont Savings Bank, for $327m.
People’s United Bank, the subsidiary of People’s United Financial, manages more than $48bn in assets. It has more than 400 retail locations across Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.