Webster Buys StoneCastle Sweeps
A press release entitled, "Webster Signs Definitive Agreement to Acquire interLINK," tells us, "Webster Financial Corporation ... announced that its principal bank subsidiary Webster Bank, N.A. has signed a definitive agreement to acquire StoneCastle Insured Sweep, LLC (d/b/a interLINK), a subsidiary of StoneCastle Partners, LLC. interLINK is a technology-enabled deposit management platform administering over $9 billion of deposits from FDIC-insured cash sweep programs between banks and broker/dealers and clearing firms. interLINK leverages highly scalable technology, generating significant liquidity at minimal operating cost. The acquisition of interLINK provides Webster with access to core deposit funding and adds another technology-enabled channel to Webster's already differentiated, omnichannel deposit gathering capabilities, including our Commercial and Consumer Banking Businesses, HSA Bank and BrioDirect." John Ciulla, President & CEO of Webster Financial Corporation, comments, "The acquisition complements our strategy to build a bank with diverse funding capabilities and technology-enabled businesses. interLINK is a unique deposit channel that provides a scalable source of liquidity for the company." The release adds, "Under the agreement, interLINK will continue to operate and serve its broker/dealer and clearing firm clients as it does today. Financial terms of the transaction were not disclosed. The transaction is expected to close in the first quarter of 2023." The Stamford Advocate writes about the news in its story, "Webster Bank agrees to acquire deposit-management platform." They tell us, "Cash-sweep services are widely offered. Investopedia defines a sweep account as 'a bank or brokerage account that automatically transfers amounts that exceed, or fall short of, a certain level into a higher interest-earning investment option at the close of each business day. Commonly, the excess cash is swept into a money market fund.'"
