Webster Financial Acquired by Santander in $12.3 Billion Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
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Source: Newsfilter
- Massive Transaction Value: Santander's acquisition of Webster Financial is valued at approximately $12.3 billion in a cash-and-stock deal, with Webster shareholders receiving $48.75 in cash and 2.0548 Santander American Depository Shares per share, indicating Santander's strong commitment to this acquisition.
- Enhanced Shareholder Value: The per-share consideration of $75.59 represents a 16% premium over Webster's 10-day volume-weighted average stock price, not only boosting returns for Webster shareholders but also strengthening Santander's competitive position in the U.S. market.
- Leadership Integration: Webster's management team will remain in place to ensure smooth business integration, with CEO John Ciulla becoming CEO of Santander Bank, reflecting trust and support for the existing leadership.
- Strategic Implications: This acquisition significantly enhances Santander's scale and profitability in the U.S. while maintaining shareholder return commitments, including a €5 billion share buyback program, showcasing Santander's confidence in future growth.
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Analyst Views on SAN
Wall Street analysts forecast SAN stock price to fall
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 12.050
Low
4.90
Averages
7.40
High
9.91
Current: 12.050
Low
4.90
Averages
7.40
High
9.91
About SAN
Banco Santander, S.A. is a Spain-based company engaged as a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company's commercial model satisfies the needs of all types of customers: individuals with various income levels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Performance: Banco Santander's stock has surged 142% over the past 12 months, indicating robust market performance and reflecting its competitive edge and growth potential in the global banking sector.
- Acquisition Strategy: The bank's acquisition of Webster Financial, a community bank based in Connecticut, is part of its strategic expansion in the northeastern U.S. market, aimed at enhancing market share and profitability.
- Profitability Goals: Santander aims to achieve a 20% return on tangible equity by 2028, showcasing its confidence in future growth and attractiveness to investors.
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- Buyback Program Launch: The bank announced a €5.03B share buyback program, with €1.83B corresponding to 25% of the underlying profit for the second half of 2025, aimed at enhancing shareholder returns and boosting market confidence.
- Expense Control: Despite operating expenses rising from €6.27B to €6.59B, Banco Santander achieved a 7.4% increase in attributable profit to €3.76B, surpassing analyst expectations, demonstrating effective cost management.
- Capital Adequacy Improvement: The return on equity increased from 13.8% to 17.9% in Q4, with customer deposits reaching €1.04T, reflecting a strong customer base and capital generation capacity that lays a solid foundation for future growth.
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- Commitment to Buybacks: The board has approved a €5 billion share buyback program aimed at returning capital to shareholders against FY 2025 and 2026 earnings, demonstrating confidence in future performance and a strong commitment to enhancing shareholder value.
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