Business
Cambridge Bancorp Enters Into Definitive Agreement to Merge with Eastern Bankshares, Inc.
CAMBRIDGE, Mass., Sept. 19, 2023 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC) ("Cambridge"), the parent company of Cambridge Trust Company ("Cambridge
About this update from Eastern Bankshares, Inc.
[{"type":"text","content":"CAMBRIDGE, Mass., Sept. 19, 2023 /PRNewswire/ -- Cambridge Bancorp (NASDAQ: CATC) (\"Cambridge\"), the parent company of Cambridge Trust Company (\"Cambridge Trust\"), and Eastern Bankshares, Inc. (\"Eastern\") (NASDAQ Global Select Market: EBC), the stock holding company for Eastern Bank, announced they have entered into a definitive merger agreement pursuant to which Cambridge will merge with and into Eastern in an all-stock transaction valued at approximately $528 million (\"the merger\").\n\n \n \n \n \n \n \n\n \nKey Highlights:\nEach share of Cambridge common stock will be exchanged for 4.956 shares of Eastern common stock, a 24% premium to Cambridge's thirty-day volume weighted average priceMerger will create a $27 billion combined franchise and further solidify Eastern as the largest community bank in Massachusetts and New Hampshire by deposits 1Merger will create the largest bank-owned Independent Investment Advisor in Massachusetts and the tenth largest overall in Massachusetts 2Eastern plans to welcome Denis Sheahan, President and CEO of Cambridge, to its executive team as CEO1 Source: S&P Global Market Intelligence; FDIC Summary of Deposit Survey (2022). Excludes trust banks.2 Source: Boston Business Journal\n \nCambridge and Eastern Merger\nUnder the terms of the merger agreement, which has been unanimously approved by both boards of directors, each share of Cambridge common stock will be exchanged for 4.956 shares of Eastern common stock. Eastern anticipates issuing approximately 39.4 million shares of its common stock in the merger. Based upon Eastern's $13.41 per share closing price on September 18, 2023, the transaction is valued at approximately $528 million and the aggregate consideration represents 114% of Cambridge's tangible book value* and a 24% premium to Cambridge's thirty-day volume weighted average price.\nUpon closing, Denis Sheahan, Chairman, President and CEO of Cambridge, will become the CEO of Eastern and will join Eastern's Board of Directors. Eastern's President Quincy Miller will be promoted to Vice Chair, President, and Chief Operating Officer. Both Mr. Sheahan and Mr. Miller will report directly to Bob Rivers, who will serve as Executive Chair and Chair of the Board of Directors. In addition to Mr. Sheahan, three Cambridge directors are expected to be elected to Eastern's Board of Directors i...