Banco Santander announced Tuesday that it has agreed to acquire Webster Financial Corporation, the Stamford, Conn. based parent of Webster Bank, in a transaction valued at about $12.2 billion, marking a major expansion of the Spanish lender’s presence in the United States.

Under the terms of the deal, Webster Bank shareholders will receive $48.75 per share in cash and 2.0548 Santander American depositary shares for each Webster share, equating to roughly $75 per share. The transaction represents a premium to Webster’s recent trading levels, according to Santander Bank’s Feb. 3 release.

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Santander said the combination will create a stronger and more competitive bank for customers on both sides of the Atlantic. The merged entity is projected to become among the top 10 retail and commercial banks in the United States by assets and a top-five deposit franchise in key Northeast states, bolstering Santander’s network and services.

Santander U.S. CEO Christiana Riley will continue leading the U.S. operation, while current Webster CEO John Ciulla is expected to serve as CEO of Santander Bank NA after integration.

The companies said Santander’s Boston and Webster’s Stamford offices will be core hubs for the combined business, the release stated.

The acquisition is part of Santander’s strategy to accelerate growth in its core markets and is expected to improve profitability, with a targeted return on tangible equity of 18% in the U.S. by 2028. The deal also is expected to deliver about $800 million in annual cost synergies.

Santander and Webster will continue to operate independently until the deal, which remains subject to regulatory and shareholder approvals, is expected to close in the second half of 2026.