Eastern Bankshares, a Boston-based mutual that is the country’s largest of its kind, and Century Bancorp have entered into an agreement to merge companies, with an aggregate transaction value of $642 million, according to a press release.
The transaction, which is in-market, comes after Eastern’s initial public offering (IPO), which raised around $1.7 billion in equity capital, the release stated. The combined merger creates $22 billion in assets between the two, with Eastern boasting $16 billion and Century with $6.4 billion.
The acquisition is expected to close in the fourth quarter of the year, according to the release.
The purchase price of $642 million represents around 1.75 times the tangible book value of Century as of Dec. 31. The transaction, according to Eastern, could be around “55 percent accretive to earnings on a fully synergized basis,” the release stated.
“Our complementary business models and shared values make this partnership a natural fit,” said Century Bank Chairman, President and CEO Barry R. Sloane in the release. “Both organizations are highly respected as leaders in the community, and we believe Eastern’s focus on innovation and technology will help to further ensure Century customers have greater access to banking products and services that meet their needs where and when they need them.”
Bob Rivers, CEO and Chair of the Board of Eastern Bankshares and Eastern Bank, said in the release that the company is “excited for the opportunities this agreement creates and believe our combination will deepen our reach in providing banking services and other support to communities across Greater Boston and southern New Hampshire.”
Eastern was founded over 200 years ago in 1818. In June, it was said to be getting ready for its IPO, planning to do away with its long-term format, PYMNTS reported. At the time, Rivers had overseen the bank’s growth to over $12.3 billion in assets.