Banco Santander has agreed to acquire Webster Financial Corporation, the holding company for Webster Bank, in a deal that values Webster at an implied equity valuation of $12.2 billion.

Under the agreement, Webster shareholders will receive $48.75 per share, consisting of $26.25 in cash and 2.0548 Santander American Depositary Shares per Webster share. The transaction is expected to close in the second half of 2026.

“This transaction is strategically significant for our U.S. business, while remaining a bolt-on for the overall Group,” said Ana Botín, executive chair of Banco Santander. “It allows us to strengthen our franchise in both scale and profitability—improving our funding mix and economics, including lower funding costs—and puts us on track to deliver around 18% RoTE in the U.S. by 2028.”

Santander said the combined group would generate approximately $800 million in cost synergies, or about 19% of the combined cost base, while maintaining a CET1 ratio of 12.8% post-closing and over 13% by 2027.

“This acquisition is a significant step forward in strengthening our commercial banking presence and filling in our retail branch footprint and scale, particularly in Connecticut,” said Christiana Riley, CEO of Santander US.

Webster’s Stamford headquarters will become a core corporate office for Santander. “As a larger organization, we will unlock greater scale, broader capabilities and new opportunities for growth,” added John Ciulla, who will serve as CEO of Santander Bank, N.A., following the integration.

Upon completion, Santander is expected to rank among the top-10 U.S. retail and commercial banks by assets, with approximately $327 billion in assets, $185 billion in loans, and $172 billion in deposits.