Citizens Financial to Acquire Investors Bancorp in About $3.5 Billion Deal

Citizens Financial Group Inc. CFG,
+0.25%
said Wednesday it has approved the acquisition of Investors Bancorp Inc. ISBC,
-0.76%
in a deal with an implied value of approximately $3.5 billion. Under the terms of the deal, Investors Bancorp shareholders will receive 0.297 of a Citizens share and $1.46 in cash for each holding, and will own 14% of the combined company. The deal is expected to close in the first or second quarter of 2022. Citizens expects the deal to immediately boost earnings per share, boosting earnings per share by about 6.4% by 2023. It is expected to deliver approximately $130 million in fully phased annual cost savings. Citizens recently acquired 80 East Coast branches and the national online deposit business from HSBC Bank USA, NA in a deal that has given it a presence in the New York City and Philadelphia and New Jersey markets, adding approximately one million customers. . The combined Citizens franchise will operate in some of the most attractive retail and commercial banking markets in the United States, characterized by large and densely populated population centers, areas of high-income households and centers of robust business activity. bank in a statement. . Investors Bancorp shares rose 5.6% premarket and have gained 23% so far, while the S&P 500 SPX,
-0.47%
won 17%.

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