Why This Small Bank Stock Is Surging Today
Class A shares of Century Bancorp (NASDAQ: CNBKA), a $6.3 billion asset bank in the Boston area, jumped nearly 25% in the late morning today after the company announced that it plans to be acquired by Eastern Bankshares (NASDAQ: EBC).
Eastern plans to acquire Century for roughly $642 million in cash, or the equivalent of $115.28 per Century share. The deal values Century at 175% tangible book value (equity minus goodwill and other intangible assets).
In doing so, Eastern will grow to roughly $22 billion in assets and cement its place as the top community bank deposit holder in the Boston metropolitan statistical area.
Source Fool.com