Enterprise Bancorp Agrees to $562M Merger with Independent Bank
Deal News | Dec 10, 2024 | EIN
Enterprise Bancorp, the parent company of Enterprise Bank, is set to merge with Independent Bank, the parent company of Rockland Trust, in a $562 million cash-stock deal. The merger will involve Enterprise Bancorp merging into Independent Bank, while its subsidiary, Enterprise Bank, will merge into Rockland Trust. Shareholders of Enterprise Bancorp are to receive 0.60 shares of Independent common stock and $2.00 in cash per share. Independent Bank will issue about 7.5 million shares and will disburse $27.1 million in cash as part of this transaction. Following this merger, Rockland Trust aims to expand its presence in Northern Massachusetts and New Hampshire. The merger has been approved by both companies' boards and is expected to conclude in the second half of 2025, subject to regulatory and shareholder approvals. Post-merger, Rockland Trust's assets are projected to hit $25 billion, with wealth assets under administration reaching $8.7 billion. The deal is expected to enhance earnings, and Independent Bank plans to raise $250 million in subordinated debt before closing the deal. Financial advice for Independent Bank was provided by Keefe, Bruyette & Woods, while legal counsel was delivered by Simpson Thacher & Bartlett.
Sectors
- Banking and Financial Services
- Mergers and Acquisitions
Geography
- United States – The merger involves companies based in the U.S., with an expansion focus on Northern Massachusetts and New Hampshire.
Industry
- Banking and Financial Services – The article discusses a merger involving banking institutions, showcasing activities like asset management, wealth services, and expanding geographical reach.
- Mergers and Acquisitions – The article centers on a merger deal between two banking companies, highlighting strategic growth and consolidation.
Financials
- $562 million – Total value of the cash-stock deal between Independent Bank and Enterprise Bancorp.
- $27.1 million – Cash component to be paid by Independent Bank in the merger deal.
- 7.5 million shares – Number of shares to be issued by Independent Bank as part of the merger.
- $250 million – Amount Independent Bank aims to raise in subordinated debt prior to closing the merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Enterprise Bancorp | Target | Company | Parent company of Enterprise Bank, based in Massachusetts and New Hampshire, with 27 branches. |
| Independent Bank | Bidding Company | Company | Parent company of Rockland Trust, entering into a $562 million merger agreement with Enterprise Bancorp. |
| Rockland Trust | Other - Banking Entity | Company | Subsidiary of Independent Bank, will merge with Enterprise Bank. |
| Enterprise Bank | Other - Banking Entity | Company | Subsidiary of Enterprise Bancorp, operating in Massachusetts and New Hampshire. |
| Jeffrey Tengel | Other - Executive | People | President and CEO of Independent Bank, commenting on the strategic fit of the merger. |
| Keefe, Bruyette & Woods | Other - Financial Advisor | Company | Provided financial advice to Independent Bank for the merger. |
| Simpson Thacher & Bartlett | Other - Legal Advisor | Company | Provided legal counsel for Independent Bank in the merger. |