Webster Financial agrees to acquire Ametros for $350M in cash

Webster Financial announced that its principal bank subsidiary Webster Bank has signed a definitive agreement to acquire Ametros Financial Corp, a custodian and administrator of medical funds from insurance claim settlements, from funds managed by Long Ridge Equity Partners. “This acquisition closely aligns with our strategic focus on building a diverse and unique funding base,” said John Ciulla, President and Chief Executive Officer of Webster Financial Corporation. “Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business. Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favorable financial profile, including HSA Bank and interLINK.” Webster will acquire Ametros for $350M in cash, subject to customary adjustments. The acquisition is anticipated to be over 2% accretive to FY25 consensus estimates, generate an IRR over 25%, and has a five-year earn-back of tangible book value dilution. Upon the close of the transaction, Ametros will operate as a subsidiary of Webster. The transaction is expected to close in the first quarter of 2024, subject to the satisfaction of customary closing conditions and anti-trust review. Webster was advised by Wachtell, Lipton, Rosen & Katz. Ametros and Long Ridge were advised by Choate, Hall & Stewart LLP.