STAMFORD, Conn. – Webster Financial Corp., through its principal bank subsidiary, Webster Bank N.A., has agreed to purchase medical insurance settlement fund manager Ametros Financial Corp. for $350 million in cash from funds managed by private equity firm Long Ridge Equity Partners.
Webster, which has seven locations and more than $363 million in deposits in Rhode Island, said the acquisition of Wilmington, Mass.-based Ametros will “provide a fast-growing source of low-cost and long-duration deposits, provide new sources of noninterest income, and enhance Webster’s health care financial services expertise.”
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The bank said Ametros is the nation’s largest professional administrator of medical insurance claim settlements and helps individuals manage their medical care.
As of December, Ametros has more than 24,000 members and $804 million in deposits under custody, which will become deposits of Webster following the closing of the transaction, the bank said. Webster noted that Ametros’ deposits under custody have more than doubled over the past three years and the average deposit balance per account was $33,000.
“This acquisition closely aligns with our strategic focus on building a diverse and unique funding base,” said John Ciulla, Webster Financial CEO and president. “Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business.”
The transaction is expected to close in the first quarter of 2024, subject to closing conditions and an anti-trust review.
“Webster is the perfect growth partner for our unique business,” said Ametros CEO Porter Leslie. “We are thankful for our clients and members who continue to place their trust in us and are excited for this next phase of growth together.”
