Based in New York, First Niagara is a multi-state community-oriented bank with total assets worth of $39bn and $29bn in deposits and 394 banking offices in New York, Pennsylvania, Connecticut and Massachusetts.
With this acquisition, KeyCorp will have a strong market presence in Buffalo, Albany, Syracuse and Rochester, in addition to expanding its operations to Pennsylvania, Massachusetts and Connecticut.
As per the agreed terms, First Niagara shareholders will receive 0.68 KeyCorp shares and $2.30 in cash for each First Niagara common share.
Upon completion of the acquisition, First Niagara will be completely integrated into KeyCorp’s business.
The combined bank is expected to become the 13th largest commercial bank headquartered in the US with an ability to serve three million clients across diverse markets in the Northeast, Mid-Atlantic, Midwest and Pacific Northwest.
It will have approximately $99.8bn in deposits, $83.6bn in loans and 1,366 branches across 15 states.
First Niagara president and CEO Gary M. Crosby said: "Combining our strengths with those of Key will enable us to even better serve customers with a broader set of product features and functionality, while providing our team members with expanded opportunities as part of a larger, more-diversified organization.
"Key shares our values and our culture of diversity, inclusion and community service – I look forward to working with their team to ensure a seamless integration of our businesses for the benefit of all of our stakeholders."
Subject to regulatory approvals and approval from KeyCorp and First Niagara shareholders, the acquisition will be completed in the third quarter of 2016.
Image: KeyCorp headquarters in Cleveland, Ohio. Photo: courtesy of Lisa Chamberlain / Wikipedia.
