Webster Financial Corporation Acquire Ametros Financial Corp. a custodian and administrator of medical funds from insurance claim settlements, from funds managed by Long Ridge Equity Partners (“Long Ridge”).
Ametros, the nation’s largest professional administrator of medical insurance claim settlements, helps individuals manage their ongoing medical care through their CareGuard service and proprietary technology platform.
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CareGuard provides settlement advisory support, saves its members money on medical expenses, ensures compliance with government reporting, and facilitates the navigation of the complex U.S. healthcare system.
The acquisition of Ametros will provide a fast-growing source of low-cost and long-duration deposits, provide new sources of noninterest income, and enhance Webster’s healthcare financial services expertise. Ametros’ deposit characteristics provide a unique value to Webster:
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Average cost of less than 10 basis points with near-zero beta; Average duration of more than 20 years; Member accounts receive FDIC insurance coverage; and Deposits are projected to grow at a five-year CAGR of approximately 25%.
John Ciulla, President and Chief Executive Officer of Webster Financial Corporation said, “This acquisition closely aligns with our strategic focus on building a diverse and unique funding base, Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business. Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favorable financial profile, including HSA Bank and interLINK.”
Ametros’ CEO, Porter Leslie said, “Webster is the perfect growth partner for our unique business, We are thankful for our clients and members who continue to place their trust in us and are excited for this next phase of growth together.”
Webster will acquire Ametros for $350 million in cash, subject to customary adjustments. The acquisition is anticipated to be over 2% accretive to FY25 consensus estimates, generate an IRR over 25%, and has a five-year earn-back of tangible book value dilution. Upon the close of the transaction, Ametros will operate as a subsidiary of Webster.
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About Webster
Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A. and its HSA Bank Division. Webster is a leading commercial bank in the Northeast that provides a wide range of digital and traditional financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country’s largest providers of employee benefits solutions.
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