Brookline Bancorp Inc. has come under an agreement to acquire First Ispwich Bancorp for an all-cash transaction of $19.7 million.
The acquisition is subject to approval of First Ipswich shareholders. It is expected the transaction will be occur in the first quarter of 2011, according to a statement.
Through the transaction, First Ipswich will receive $8.10 in cash in exchange for each share of First Ipswich common stock and Series A preferred stock outstanding, according to a statement. It is possible that First Ipswich may remain a separate subsidiary of Brookline Bancorp. Together, the two organizations will have 26 banking offices in the Boston metropolitan area and on the North Shore.
“This deal recognizes the value of the First National Bank of Ipswich (FNBI) franchise, as we continue to serve the North Shore in the years to come," said Russell Cole, president and chief executive officer of FNBI. "This acquisition offer confirms that the hard work done in recent years by our board, management and staff was a success, and demonstrates that we are an attractive partner. I look forward to joining forces with such a well-positioned and well-respected bank in achieving even greater results in the future.”
Once the transaction is complete, Cole will continue to serve as president and chief executive officer of FNBI and all branch offices will be retained, according to a statement.
