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Webster Buying NewMil

The deal is worth $172 million.

Webster Financial

(WBS) - Get Free Report

agreed to acquire

NewMil Bancorp


for $172.5 million in stock.

NewMil Bancorp shareholders will receive $41 in Webster common stock for each share of NewMil Bancorp common stock so long as Webster's average stock price is between $44.85 and $50.25 per share. If the average Webster stock price is below $44.85, the exchange ratio will be fixed at 0.9142. If the average Webster stock price is above $50.25, the exchange ratio will be fixed at 0.8159, the company said.

"Our partnership with NewMil Bancorp is a combination of like-minded institutions that share a vision to be the region's leading financial service provider," the company said. "This alliance unites us with our highly respected partner while deepening Webster's presence in Litchfield, New Haven and Fairfield Counties. We know well Connecticut's markets and customers."

NewMil Bank and Webster Bank will merge operations, and existing NewMil Bank branches will be renamed as branches of Webster Bank.

NewMil rose $11 to $39.91 Tuesday, while Webster slipped 52 cents to $47.07.

This story was created through a joint venture between and IRIS.