Washington Trust Bancorp Inc. in Westerly, R.I., said Monday that it has a $26 million agreement to buy Weston Financial Group Inc., a Wellesley, Mass., registered investment adviser with $1.2 billion of assets under management.
Weston specializes in comprehensive financial planning and investment counseling for high-net-worth customers through third-party, open-architecture wealth management products. It was founded in 1979 and has clients in the Boston area and throughout New England and the country.
At the deal's closing, which is expected in the third quarter, Washington Trust is to acquire all the outstanding shares of Weston's capital stock for $20 million in cash, subject to customary adjustments for the percentage of investment accounts transferred and other matters. In addition, the transaction is structured to provide for contingent payments based on operating results during a three-year earn-out period ending Dec. 31, 2008, with a guaranteed minimum payout of $6 million in cash during the three years.
Washington Trust said it expects to finance the transaction primarily through the issuance of trust preferred stock and does not expect to issue any common stock in connection with the deal. Management expects the deal to be immediately accretive to earnings per share.
