PROVIDENCE – Banco Santander S.A., the Madrid-based parent of Santander Holdings USA Inc. and Santander Bank N.A., announced Tuesday it will acquire Webster Financial Corp., the Stamford, Conn.-based parent of Webster Bank, in a cash-and-stock transaction valued at approximately $12.3 billion.
The deal, approved unanimously by both boards, will create one of the 10 largest U.S. banks by assets and a top five player by deposits in the Northeast, according to a news release announcing the acquisition.
Under the terms, Webster shareholders will receive $48.75 in cash and 2.0548 Santander American Depository Shares for each Webster common share – a package worth $75.59 per share based on closing prices as of Feb. 2, the companies said. The offer represents a 16% premium over Webster’s 10-day volume-weighted average stock price and a 9% premium over its all-time high closing stock price.
The transaction, pending shareholder and regulatory approvals in the U.S. and the European Union, is expected to close in the second half of 2026.
“This is an exciting combination that brings together complementary strengths and a shared commitment to excellence,” said Webster Chairman and CEO John R. Ciulla. “As a larger organization, we will unlock greater scale, broader capabilities and new opportunities for growth – while remaining deeply focused on the people who define our success. I look forward to joining the Santander team and enhancing our ability to support our clients.”
Ciulla said it was paramount to both he and the board that Webster partner “with an organization that understands the importance and power of legacy as we do and the value we place on our clients," adding, "we found that shared commitment in Santander.”
For Banco Santander, also known as Santander Group, the deal marks a major expansion of its U.S. footprint – an operation long seen as ripe for growth, said Executive Chair Ana Botín.
News of the merger comes months after Santander
announced plans in April 2025 to close its Atwells Avenue branch in Providence as part of a broader regional downsizing.
“This is an exciting step forward for Santander Group, as it creates a stronger bank for our customers and the communities we serve,” Botín said. “Webster is one of the most efficient and profitable banks among its peers and bringing together two highly complementary franchises will expand the products, technology and capabilities we can deliver.”
Botín added that the deal is “strategically significant” for Santander’s U.S. business while remaining “a bolt-on for the overall Group,” and stressed it would not affect shareholder returns.
Once complete, Webster will operate as a wholly owned subsidiary of Santander.
Ciulla will become CEO of Santander Bank N.A., into which Webster’s operations will fold, while Webster President and Chief Operating Officer Luis Massiani will serve as chief operating officer of both Santander’s U.S. holding company and Santander Bank. Both will remain based at Webster’s Stamford headquarters, which will become one of Santander’s core U.S. offices.
Christiana Riley will continue as Santander’s U.S. country head and CEO of Santander Holdings USA, with Tim Ryan staying on as board chair of both Santander Holdings USA and Santander Bank N.A.
Advising on the deal are J.P. Morgan Securities LLC as lead financial adviser and Wachtell, Lipton, Rosen & Katz as legal counsel to Webster. Piper Sandler & Co. also served as a financial adviser to Webster.
Webster Bank has six full-service branches in Rhode Island, as well as a private bank office in Providence.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
