Banco Santander said it has agreed to acquire Webster Financial Corp., the parent company of Webster Bank, N.A., in a transaction designed to forge a larger and more competitive retail and commercial banking franchise in the United States.
The deal, which values Webster at an implied equity valuation of $12.2 billion (€10.3 billion), marks a significant expansion of Santander’s U.S. footprint and positions the combined institution among the country’s top-tier lenders.
The move is equivalent to roughly 4% of Santander’s total assets and will vault the combined entity into the ranks of the top-ten retail and commercial banks in the U.S. by assets and a top-five deposit franchise across key Northeastern states.
Building Scale in the Northeast
Webster, founded in 1935 and headquartered in Stamford, Connecticut, serves individuals, families and businesses across consumer, commercial and healthcare financial services. It has a strong presence in affluent markets and middle-market lending, supported by a stable and attractive deposit base.
Santander, meanwhile, has built a reputation in the U.S. through its consumer finance operations and, more recently, digital deposit growth driven by Openbank. By integrating Webster — regarded as one of the most efficient deposit gatherers in the U.S. market — Santander expects to materially lower its pro forma funding costs.
For customers, the combination promises:
