In a significant move in the banking sector, Eastern Bankshares, Inc. has finalized the acquisition of Cambridge Bancorp (NASDAQ:CATC), as detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC). The transaction, which was completed on Thursday, involved a series of mergers resulting in Cambridge Bancorp and its subsidiary, Cambridge Bank, becoming part of Eastern Bankshares.
As per the agreement, each share of Cambridge common stock has been converted into the right to receive nearly five shares of Eastern Bankshares common stock. Shareholders of Cambridge will also be compensated for any fractional shares in cash.
This exchange effectively ends the trading of Cambridge Bancorp's shares on the NASDAQ, as the company requested its delisting and will deregister its common stock under the Exchange Act.
The completion of this deal also brought changes to the rights of security holders, with Cambridge shareholders now entitled to Eastern Bankshares equity following the mergers. Additionally, all directors and officers of Cambridge Bancorp ceased their roles at the effective time of the merger.
Eastern Bankshares, Inc., through this acquisition, has indicated a change in control of Cambridge Bancorp, as stipulated in the merger agreement. The organizational documents of Eastern Bankshares have now replaced those of Cambridge Bancorp, marking the culmination of the transition.
The merger is part of a strategic consolidation in the banking industry, aiming to strengthen the combined entity's market presence. The details of the merger, including the treatment of Cambridge Bancorp's equity awards, were outlined in proxy statements previously filed with the SEC.
This news is based on a press release statement and provides a summary of key facts from the 8-K filing, without speculation or subjective assessment.
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