Webster Financial Corp. announced Monday that it had signed a definitive agreement to acquire interLINK, a company that provides cash management services to financial intermediaries and administers about 520,000 retail brokerage accounts on behalf of broker/dealers and clearing platforms.
Webster Financial, parent company of Stamford-based Webster Bank, said it has an agreement to buy StoneCastle Insured Sweep, a subsidiary of StoneCastle Partners LLC. StoneCastle Insured does business as interLINK.
Financial terms of the deal, which is expected to close in the first quarter of next year, weren’t disclosed.
Under the agreement, interLINK will still operate and serve its broker/dealer and clearing firm clients. InterLINK administers over $9 billion of deposits from FDIC-insured cash sweep programs between banks and broker/dealers and clearing firms.
Webster Financial President and CEO John Ciulla said the deal aligns with the company’s strategic planning.
“The acquisition complements our strategy to build a bank with diverse funding capabilities and technology-enabled businesses,” Ciulla said in a statement. “InterLINK is a unique deposit channel that provides a scalable source of liquidity for the company.”
This is Webster Financial’s second fintech acquisition this year. In February, Webster signed a definitive agreement to acquire Bend Financial Inc., a cloud-based platform for health savings accounts.
