Webster Financial Corporation Signed A Definitive Agreement To Acquire Ametros Financial Corp For $350M
Portfolio Pulse from Benzinga Newsdesk
Webster Financial Corporation (WBS) has agreed to acquire Ametros Financial Corp for $350 million in cash. The deal is expected to be over 2% accretive to Webster's FY25 consensus estimates, generate an IRR over 25%, and have a five-year earn-back of tangible book value dilution. Ametros will become a subsidiary of Webster post-acquisition, with the transaction slated to close in Q1 2024 pending customary closing conditions and anti-trust review.
December 14, 2023 | 9:31 pm
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POSITIVE IMPACT
Webster Financial Corporation's acquisition of Ametros Financial Corp for $350M is expected to be accretive to FY25 consensus estimates by over 2%, with an IRR over 25% and a five-year earn-back period for tangible book value dilution.
The acquisition is significant for Webster Financial as it is expected to be accretive to earnings, indicating a positive impact on the company's financial performance. The high internal rate of return (IRR) suggests that the investment is likely to be profitable, which could lead to a positive investor sentiment and potentially an increase in stock price in the short term. The relevance is high as the acquisition directly involves Webster, and the importance is also high due to the expected positive financial impact. The confidence level is set at 90, reflecting the clear financial benefits outlined, though there is always inherent uncertainty in how the market will react to such news.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100