Eastern in Boston strikes $528M deal to buy Cambridge Bancorp

Eastern Bank Revere

Eastern Bankshares has agreed to buy in-state competitor Cambridge Bancorp for more than $500 million in all stock. The transaction is expected to close in the first quarter of next year.

Eastern Bankshares in Boston said after the market closed Tuesday that it had agreed to acquire Cambridge Bancorp in Massachusetts in an all-stock transaction valued at about $528 million.

The $5.5 billion-asset Cambridge has about $4 billion of total loans, $4.4 billion of deposits and $4.4 billion of client assets under management and administration. Upon closing, slated for the first quarter of 2024, the combined company is expected to have approximately $27 billion of total assets, $18 billion of loans, $22.6 billion of deposits and $7.6 billion of assets under management and administration. 

“As we set our sights on the future, 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,” Bob Rivers, chairman and CEO of Eastern, said in a press release.

Upon closing, Denis Sheahan, chairman and CEO of Cambridge, would become the CEO of Eastern and would join its board. Eastern President Quincy Miller would be promoted to vice chair, president and chief operating officer. Both Sheahan and Miller will report directly to Rivers, who will serve as executive chair and board chair, according to the release.

In addition to Sheahan, three Cambridge directors are expected to be elected to Eastern’s board in connection with the closing.

BofA Securities served as financial advisor and Hogan Lovells provided legal counsel to Cambridge. J.P. Morgan Securities served as financial advisor and Nutter McClennen & Fish provided legal counsel to Eastern. 

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