Independent Bank Corp. in Rockland, Mass., has agreed to buy New England Bancorp in Hyannis, Mass., the parent of Bank of Cape Cod, for $30.7 million.

The $7.2 billion-asset Independent will exchange 0.25 of one share of its common stock for one share of stock of the $260 million-asset New England, and it expects to issue a total of about 660,000 shares. It will also cash out New England's warrants and options that remain outstanding at the time of closing.

Independent expects the acquisition to produce 5 cents of accretion to 2017 operating earnings, largely through cost cuts. It would be neutral to Independent's tangible book value, and Independent expects to record about $3 million in one-time merger costs.

The transaction is expected to qualify as a tax-free reorganization and would provide a tax-free exchange for New England's shareholders.

New England Bancorp operates four branches of Bank of Cape Cod in Barnstable County, Mass. Independent, the holding company for Rockland Trust, has 12 branches in Barnstable County,

Keefe, Bruyette & Woods was financial adviser to Independent; Day Pitney was legal counsel. Piper Jaffray advised New England and Luse Gorman was legal counsel.

The deal was announced Thursday and is expected to close in the fourth quarter.

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