WBS, through its principal bank subsidiary, Webster Bank, has agreed to acquire medical insurance settlement fund manager Ametros Financial for $350m.

Under the deal, Webster will acquire Ametros from funds managed by Long Ridge Equity Partners.

Ametros is a custodian and administrator of medical funds from insurance claim settlements.

It is engaged in helping individuals manage ongoing medical care as an administrator of medical insurance claim settlements.

As of December 2023, the company has more than 24,000 members and $804m in deposits under custody.

Webster expects the acquisition of Ametros to provide a fast-growing source of low-cost and long-duration deposits.

It will also provide new sources of non-interest income and improve its healthcare financial services expertise.

Webster Financial CEO and president John Ciulla said: “This acquisition closely aligns with our strategic focus on building a diverse and unique funding base.

“Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business. Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favourable financial profile, including HSA Bank and interLINK.”

Subject to the satisfaction of customary closing conditions and anti-trust review, the transaction is due for completion in the first quarter of 2024.

Ametros CEO Porter Leslie said: “Webster is the perfect growth partner for our unique business. We are thankful for our clients and members who continue to place their trust in us and are excited for this next phase of growth together.”

Wachtell, Lipton, Rosen & Katz has advised Webster on the transaction while Choate, Hall & Stewart advised Ametros and Long Ridge.