Rockland, Massachusetts-based Independent Bank Corp. said Monday it would acquire rival Enterprise Bancorp in suburban Boston in a cash-and-stock deal valued at $562 million.
The $19.4 billion-asset Independent, parent of Rockland Trust Co., expects to close the buyout of Lowell, Massachusetts-based Enterprise in the second half of 2025.
The deal would give Independent $4.7 billion of additional assets, $3.8 billion of loans and $4.2 billion of deposits. It would also pick up $1.5 billion of wealth assets under management and administration, according to a news release. Enterprise would merge into Independent and its Enterprise Bank would be folded into Rockland Trust.
Enterprise Bank operates 27 branches in Massachusetts and New Hampshire. Rockland Trust does not plan to close any Enterprise Bank branches and intends to maintain a significant presence in Lowell, a northern Boston suburb.
"We look forward to extending Rockland Trust's footprint in northern Massachusetts, as well as entering the New Hampshire market," Jeffrey Tengel, Independent's president and CEO, said in the release. "Together, our combined institution will bring expanded convenience and additional products and services to the communities we are proud to serve."
Independent plans to issue nearly 7.5 million shares and pay $27.1 million in cash as part of the deal. Enterprise shareholders will receive 0.6 shares of Independent common stock and $2 in cash for each share they hold.
In connection with the deal, Independent also plans to raise about $250 million in subordinated debt.
Independent said it expects the combination to be about 16% accretive to its earnings per share in 2026. Independent anticipates the transaction will meet its tangible book value earn-back target period of three years or less. Combined merger-related charges were expected to be about $61.2 million before taxes, the company said.
Including this deal, more than
"Our customers will benefit from the additional products, services and technology Rockland Trust offers while continuing to experience the personal relationships they deserve," Enterprise CEO Steven Larochelle said in the release.
After closing, Larochelle will serve as a consultant for Rockland Trust for one year. George Duncan, board chair and Enterprise Bank founding member, will become an advisor to the Independent board.
Additionally, Independent will appoint two Enterprise directors to its board following the merger. The boards of both companies have approved the transaction.
The latest deal marked the ninth of 2024 with a price tag above $500 million, according to S&P. There were only four deals over the two prior years combined that exceeded $500 million. Independent's deal ranks as the ninth largest by value this year.
Winter Haven, Florida-based SouthState Corp.'s May announcement that it would pay $2 billion in stock to
