(Reuters) - Enterprise Bancorp and Independent Bank (NASDAQ:INDB), the parent of Rockland Trust, have agreed to merge in a cash-and-stock deal valued at $562 million, they said on Monday, as regional lenders continue to consolidate their operations.
Massachusetts-based Enterprise will merge into Independent (LON:IOG) and its subsidiary Enterprise Bank will merge into Rockland Trust, the companies said.
Enterprise shareholders will receive 0.60 shares of Independent's common stock and $2.00 in cash for each share of Enterprise's common stock they hold.
Regional lenders, at the heart of last year's banking crisis, have been cutting more deals to shore up their balance sheets and compete with rivals, extending a wave of consolidation in the sector that may attract anti-trust scrutiny.
Tie-ups lower banks' cost of capital and allow acquirers to grow and diversify deposits, a key source of funding for lenders.
Michigan-based bank Independent anticipates issuing about 7.5 million shares of its common stock and paying an aggregate amount of $27.1 million in cash in the merger.
The lender also expects the merger to add about 16% to its earnings per share in 2026. It plans to raise approximately $250 million in subordinated debt prior to the transaction closing.