Hanover-based Independent Bank Corp., the parent of Rockland Trust Co., will acquire Middleborough-based Mayflower Bancorp, the parent of Mayflower Bank, later this year in a deal valued at $37.2 million. 

The transaction, announced Wednesday, will likely close in the fourth quarter of this year, according to a statement from the two companies.

"Mayflower Bank is a profitable, well-managed institution with an excellent deposit base and strong credit quality. This acquisition will further strengthen Rockland Trust’s position in the attractive Plymouth County area." Christopher Oddleifson, CEO of Independent Bank Corp., said in a statement.

The agreement provides that 70 percent of outstanding Mayflower shares will be exchanged for Independent shares at a fixed exchange ratio of .565 of an Independent share for each Mayflower share. Independent will purchase the remaining 30 percent of outstanding Mayflower shares for $17.50 per share in cash. Based on Independent’s $32.03 per share closing price on May 13.

Executives at Independent anticipate that the acquisition will be approximately 1.5 percent accretive to 2014 earnings, exclusive of one-time charges, primarily driven by consolidation efficiencies and approximately 2 percent accretive annually thereafter. The transaction is expected to generate an internal rate of return of approximately 15 percent, and estimates tangible book dilution of approximately 2 percent that will be recaptured in about 3 months with a "crossover" of approximately 5 years.

Mayflower Bank currently has eight Plymouth County bank branches, approximately $236 million in deposits and approximately $141 million in loans.

Independent was advised by Keefe, Bruyette & Woods and used Choate Hall & Stewart LLP as its legal counsel. Mayflower was advised by Sterne, Agee & Leach, Inc. and used Kilpatrick Townsend & Stockton LLP as its legal counsel.