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Massachusetts, US-based Cambridge Bancorp, Wellesley Bancorp Close Merger
Monday 01 June 2020

Massachusetts, US-based Cambridge Bancorp (NASDAQ: CATC), the holding company for Cambridge Trust Company, has closed the acquisition of Massachusetts-based Wellesley Bancorp, Inc., the holding company for Wellesley Bank, in an all-stock transaction valued at USD 122m, the company said.

In connection with the closing of the merger, Thomas J. Fontaine, the former chairman, president and CEO of Wellesley will join the combined company in the role of Chief Banking officer and as a director.

Simon Gerlin and Kathy Hinderhofer, former directors of Wellesley, were also appointed to the boards of directors of Cambridge Bancorp and Cambridge Trust Company.

Under the terms of the agreement, each share of Wellesley common stock will be exchanged for 0.580 shares of Cambridge common stock. The transaction is presently valued at USD 45.54 per Wellesley common share.

This merger is expected to enhance and expand Cambridge's Greater Boston presence with the addition of Wellesley's six full service banking offices in Norfolk, Middlesex, and Suffolk Counties.

As of September 30, 2019 Wellesley had approximately USD 986m of total assets, USD 833m of gross loans, USD 759m of deposits, and USD 363m of wealth management assets.

Based on financial metrics as of September 30, 2019, the combined company is expected to have over USD 3.8bn in assets, USD 3.0bn in gross loans, USD 3.2bn in deposits, and USD 3.6bn of wealth management assets upon completion of the transaction.

Cambridge Bancorp, the parent company of Cambridge Trust company, is based in Cambridge, Massachusetts.

Wellesley Bancorp, Inc. and its wholly-owned wealth management company, Wellesley Investment Partners, LLC, are subsidiaries of Wellesley Bancorp, Inc. Wellesley Bank provides personal, customised, premier banking services to successful people, families, businesses and Non-profit organisations.

Keefe, Bruyette and Woods, Inc. served as financial advisor and provided a fairness opinion to Cambridge Bancorp and Hogan Lovells US LLP served as its legal counsel. Sandler O'Neill + Partners, L.P. served as financial advisor and provided a fairness opinion to Wellesley and Kilpatrick Townsend and Stockton LLP served as its legal counsel.
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Date Published: 01/06/2020

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