Berkshire Hills Bancorp Inc. agreed to acquire smaller peer Legacy Bancorp Inc. in a nearly $110 million deal that will further bolster its presence in western Massachusetts and neighboring New York.
Berkshire also anticipates fourth-quarter earnings meeting or exceeding prior guidance.
This is a second deal in as many months for Berkshire, which expects to complete its $74 million acquisition of Rome Bancorp in the first quarter.
Legacy holders will receive 0.56385 Berkshire share and $1.30 in cash for each of their shares. That values Legacy at about $13.30 a share, a 55% premium to Tuesday's closing price.
The acquisition, expected to close by the end of June, will form a combined lender with $4 billion in assets. Including the Rome Bancorp acquisition, the combined company will have more than 60 offices.
Berkshire expects the acquisition to add 10 cents a share to 2012 earnings and "some" benefit next year. Analysts' average 2011 estimate was $1.40, according to Thomson Reuters.
Berkshire shares closed Tuesday at $21.28 and were inactive premarket.
