People’s United Bank Acquiring N.Y Based Suffolk Bancorp for $402 Million
People’s United Bank Acquiring N.Y Based Suffolk Bancorp for $402 Million

People's United Bank of Connecticut is acquiring Suffolk Bancorp in a deal of close to $402 million. With that the bank will be able to expanding its foothold in the New York Metro area.

On Monday, Suffolk Bancorp's shares climbed more than twenty five percent after the announcement of the definitive agreement with People's United Financial Inc. In the announced of a definitive agreement, the companies said that the transaction will be an all-stock deal that is valued close to $402 million.

On Monday, during morning trading Suffolk shares moved up 25.5 percent to $29.33 but shares of People's United fell 8.2 percent to $13.84.

According to the terms of the deal, shareholders of Suffolk will get 2.225 shares of People's United stock for every share of Suffolk.

The deal values Riverhead, N. Y based Suffolk's shares at $33.55 each or at a forty three percent premium based on the closing price on Friday.

In a news release, Jack Barnes the chief executive of People's United said "With the ninth-largest market share in Suffolk County, a solid relationship-banking approach and loyal, long-tenured customers, Suffolk County National Bank's strong Long Island presence complements our previous acquisitions and organic growth in the New York Metro area."