Banco Santander agreed on 3 February to acquire Webster Financial, the parent of Connecticut-based Webster Bank, in a cash-and-share transaction valued at about $12.3bn.
Why Banco Santander, S.A. is buying Webster Financial Corporation
Santander executive chair Ana Botín described Webster as one of the most efficient and profitable banks among its peers and said combining the two complementary franchises would strengthen the group's US business in both scale and profitability, while remaining a bolt-on for the wider group. Santander has said the deal supports its target of a return on tangible equity of around 18% in the US by 2028.
Deal terms and financing
Webster stockholders receive $48.75 in cash and 2.0548 Santander American Depositary Shares for each share, worth $75.59 at 2 February closing prices: a 16% premium to the 10-day volume-weighted average price, 9% above Webster's all-time closing high and more than twice fourth-quarter tangible book value. Webster becomes a wholly owned Santander subsidiary and its businesses are integrated into Santander Bank N.A.
Regulatory approvals and timing
The deal required US and EU bank regulatory approvals and votes by both sets of shareholders. Santander completed the acquisition in August 2026, Banking Exchange reported on 24 August.
Market context
Webster, founded in 1935, had more than $80bn of assets across commercial banking, healthcare financial services and consumer banking. The combined US group has around $327bn of assets, $185bn of loans and $172bn of deposits based on end-2025 figures, and serves nearly eight million customers. John Ciulla became chief executive of Santander Bank N.A. and Luis Massiani its chief operating officer, while Christiana Riley remains Santander US chief executive.
