Friday, April 26, 2024 | St. Lawrence County, NY
KeyCorp, which operates Key Bank will buy Niagara Financial Group, which operates First Niagara for $4.1 billion, according to KeyCorp. With approximately $135 billion of assets, the combined bank …
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KeyCorp, which operates Key Bank will buy Niagara Financial Group, which operates First Niagara for $4.1 billion, according to KeyCorp.
With approximately $135 billion of assets, the combined bank will be the 13th largest commercial bank headquartered in the U.S., KeyCorp said.
First Niagara headquartered in Buffalo, operates branches in Potsdam and Massena. They have $39 billion in assets and $29 billion in deposits and 394 banking offices in New York, Pennsylvania, Connecticut and Massachusetts.
KeyCorp operates numerous branches in St. Lawrence County, including Potsdam, Canton, Winthrop, Massena, Ogdensburg and Gouverneur.
First Niagara shareholders will receive 0.68 KeyCorp shares and $2.30 in cash for each First Niagara common share. The per share consideration is valued at $11.40 per share based on the closing price of KeyCorp common stock on Oct. 29. In conjunction with the closing of the transaction, three members of the First Niagara Board of Directors are expected to join the KeyCorp Board, which will be expanded accordingly, according to KeyCorp.
“Key and First Niagara are a powerful combination, driven by a shared commitment to the clients and to the communities we serve,” KeyCorp Chairman and CEO Beth Mooney said in a prepared statement. “This transformational opportunity will bring compelling and complementary capabilities to our shared 3 million clients, while driving meaningful synergies and enhancing shareholder value. KeyBank and First Niagara both have values-based cultures and a long-term commitment to and experience with the region.”
“I am confident that the combination of First Niagara and Key will benefit our shareholders, customers and the communities we serve and will build off the great progress that the First Niagara team has made,” Nathaniel D. Woodson, chairman of the First Niagara Board of Directors said in the statement. “We believe that this partnership provides significant value for our shareholders and allows them to participate in the upside potential of the combined Key and First Niagara.”
