Webster Financial (WBS) to Acquire interLINK

Webster Financial Corporation (NYSE: WBS) today announced that its principal bank subsidiary Webster Bank, N.A. ("Webster") has signed a definitive agreement to acquire StoneCastle Insured Sweep, LLC (d/b/a interLINK), a subsidiary of StoneCastle Partners, LLC ("StoneCastle").

interLINK is a technology-enabled deposit management platform administering over $9 billion of deposits from FDIC-insured cash sweep programs between banks and broker/dealers and clearing firms. interLINK leverages highly scalable technology, generating significant liquidity at minimal operating cost.

The acquisition of interLINK provides Webster with access to core deposit funding and adds another technology-enabled channel to Webster's already differentiated, omnichannel deposit gathering capabilities, including our Commercial and Consumer Banking Businesses, HSA Bank and BrioDirect.

"The acquisition complements our strategy to build a bank with diverse funding capabilities and technology-enabled businesses," said John Ciulla, President and Chief Executive Officer of Webster Financial Corporation. "interLINK is a unique deposit channel that provides a scalable source of liquidity for the company."

Under the agreement, interLINK will continue to operate and serve its broker/dealer and clearing firm clients as it does today. Financial terms of the transaction were not disclosed. The transaction is expected to close in the first quarter of 2023.

BofA Securities, Inc. is serving as exclusive financial advisor and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Webster.

Keefe, Bruyette & Woods, a Stifel Company, is serving as exclusive financial advisor and Dechert LLP is serving as legal advisor to StoneCastle.

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