Three months after a Texas bank's bid for the digital deposit-gathering platform interLINK fizzled, Webster Financial in Connecticut has emerged as the new buyer.
The acquisition, which is expected to close in the first quarter, would add more than $9 billion in core deposits to Webster's $65 billion-asset bank subsidiary. The deal's financial terms were not disclosed.
"The acquisition complements our strategy to build a bank with diverse funding capabilities and technology-enabled businesses," Webster President and CEO John Ciulla said in a press release Monday.
Stamford, Connecticut-based Webster already offers high-yield savings accounts and certificates of deposit through its BrioDirect brand. And its HSA Bank division is a large player in the health savings account business.
interLink facilitates the investment of cash from brokerage accounts into banks insured by the Federal Deposit Insurance Corp. It administers roughly 500,000 retail brokerage accounts on behalf of broker-dealers and clearing platforms, according to the press release.
Webster said in the release that interLINK will continue to operate as it does today, serving broker/dealers and clearing firm clients. The bank also said that the platform's digital technology is "highly scalable" and that it generates "significant liquidity at minimal operating cost."
Spokespersons for Webster and StoneCastle did not immediately respond to requests for additional comment.
interLINK began in 2010 as Intermedium Financial and was bought by StoneCastle Partners in 2017. In March, StoneCastle reached a $91 million cash-and-stock deal to sell the platform to Veritex Community Bank in Dallas.
Veritex had planned to use interLINK to drive
Veritex also said at the time that it was "considering all options" related to what it called potentially "willful and material breaches" of the purchase agreement. A Veritex spokesperson did not immediately respond Monday to a request for comment.
In the deal announced Monday, BofA securities served as Webster's financial advisor, and Wachtell, Lipton, Rosen & Katz served as its legal advisor.
Keefe, Bruyette & Woods served as StoneCastle's financial advisor, and Dechert served as its legal advisor.
