Eastern Bankshares and Cambridge Bancorp have announced they have entered into a definitive merger agreement pursuant to which Cambridge will merge with and into Eastern in an all-stock transaction valued at approximately $528 million.
The merger will create a $27 billion combined franchise and solidify Eastern as the largest Boston-based community bank by deposits. The combined company is also expected to have $18 billion of total loans, $22.6 billion of deposits and $7.6 billion of assets under management and administration.
Denis Sheahan, Cambridge CEO, will join Eastern’s executive team as CEO and Eastern’s President Quincy Miller will be promoted to Vice Chair, President, and Chief Operating Officer.
Under the terms of the agreement, each share of Cambridge common stock will be exchanged for 4.956 shares of Eastern common stock.
The combined wealth management and private banking divisions will operate under the Cambridge Trust brand and leadership.
Bob Rivers, CEO and chair of the board of Eastern, said: “The enhanced capabilities and financial strength created by this merger will allow us to further position Eastern as the region’s local financial partner of choice, delivering enhanced value for our customers and shareholders, greater support for our communities, and increased opportunities for our colleagues.”
The merger is expected to be completed in the first quarter of 2024, subject to shareholder approval.
Eastern has also announced it will sell the insurance operations of Eastern Insurance Group, LLC to Arthur J. Gallagher & Co. for approximately $510 million in cash consideration.
Eastern anticipates that the insurance transaction, which is subject to standard closing conditions, will close in the fourth quarter of 2023.
The leadership and employees of Eastern Insurance are expected to join Gallagher in connection with the sale.
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