Citizens Financial to acquire Investors Bancorp in a $3.5 billion deal

Citizens Financial Group will acquire Investors Bancorp in a $3.5 billion cash-and-stock deal. The deal provides the shareholders of Investors Bancorp with 0.297 of a citizen's stock and $1.46 in cash for each share owned. 

The shareholders will also own 14% of the combined company through the deal which is likely to close in the first or second quarter of 2022. Citizens are expected to drive about $130 million of fully phased-in annual cost savings. 

Citizens Financial recently acquired 80 East Coast branches and the national online deposit business from HSBC Bank in the U.S. The deal established its presence in New York City, Philadelphia metropolitan, and New Jersey markets, adding about one million customers. Through the deal with Investors Bancorp, Citizens Financial aims to further strengthen its foothold into the East Coast.

The bank wrote in its company statement, "The combined Citizens franchise will operate across some of the most attractive retail and commercial banking markets in the United States characterized by large and dense population centers, areas of high-income households, and centers of robust business activity.”

Investors Bancorp shares jumped 10.98% to $14.45 after the deal was announced and have gained 23% in the year to date, while the S&P 500 has gained 17%. Meanwhile, shares of Citizens Financial fell about 2.3% to $43.30, on Wednesday.

Picture Credits: PR Week