Community Bank System in DeWitt, N.Y., has agreed to buy Northeast Retirement Services in Woburn, Mass.
The $8.7 billion-asset Community Bank System said in a press release Monday that it will pay $140 million in cash and stock for Northeast, which offers plan accounting, transfer agency, fund administration, trust and retirement plan services. The deal is expected to close in the first quarter.
Northeast, which will become part of Community Bank System's Benefit Plans Administrative Services unit, also owns Global Trust Co., a trust company chartered in Maine. Thomas Forese, Northeast's president and CEO, and his leadership team will join Community Bank System.
"The transaction will strengthen and complement our existing [plans administration] businesses, and represents an attractive and balanced utilization of our strong currency and existing surplus capital," Mark Tryniski, Community Bank System's president and CEO, said in the release.
Community Bank System said that, excluding acquisition-related expenses, the deal should be accretive to its earnings per share in the first full year.
Raymond James and Cadwalader, Wickersham & Taft advised Community Bank System. Loomis & Co. and Nutter McClennen & Fish advised Northeast.