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Enterprise Bancorp, Inc. (NASDAQ:EBTC), a regional bank with a market capitalization of $488 million and an impressive 69.93% return over the past year, completed its merger with Independent Bank (NASDAQ:INDB) Corp. on Monday, according to a statement filed with the U.S. Securities and Exchange Commission. InvestingPro analysis suggests the stock is slightly overvalued at current levels. As a result of the transaction, Enterprise Bancorp has been merged into Independent Bank Corp., which will continue as the surviving corporation.
Following the merger, Enterprise Bank and Trust Company, a wholly owned subsidiary of Enterprise Bancorp, was merged into Rockland Trust Company, a subsidiary of Independent Bank Corp. Rockland Trust will continue as the surviving entity.
Under the terms of the agreement, each outstanding share of Enterprise Bancorp common stock, except certain shares held by either company, was converted into the right to receive 0.60 shares of Independent Bank Corp. common stock and $2.00 in cash. Prior to the merger, Enterprise Bancorp maintained a strong dividend track record, with InvestingPro data showing 20 consecutive years of dividend raises and a yield of 2.52%. Holders of Enterprise Bancorp common stock are also entitled to receive cash in place of any fractional shares.
Outstanding options to purchase Enterprise Bancorp common stock that were not exercised or canceled vested in full and were canceled, with holders receiving cash equal to the difference between the per share cash equivalent consideration and the exercise price, if applicable. Unvested restricted stock awards vested fully at the time of the merger and were treated as outstanding shares entitled to receive the merger consideration.
In connection with the completion of the merger, Enterprise Bancorp requested the suspension of trading and removal of its common stock from the Nasdaq Stock Market prior to the market opening on Monday. Independent Bank Corp., as the successor to Enterprise Bancorp, intends to file for deregistration of Enterprise Bancorp’s common stock and suspend its reporting obligations.
All directors and executive officers of Enterprise Bancorp ceased serving in those capacities as of the merger’s effective time. Kenneth S. Ansin and Joseph C. Lerner, both former Enterprise Bancorp directors, have joined the boards of Independent Bank Corp. and Rockland Trust Company.
The information in this article is based on a statement filed with the U.S. Securities and Exchange Commission.
In other recent news, Independent Bank Corp. has received all necessary regulatory approvals for its proposed acquisition of Enterprise Bancorp, with the transaction expected to close on July 1, 2025, pending customary conditions. This merger marks a significant development in the banking sector, with both companies emphasizing shared values and community commitment. Additionally, Enterprise Bancorp shareholders have approved the merger agreement and related executive compensation in a special meeting, demonstrating strong support for the deal. In another development, Enterprise Bancorp has announced a quarterly dividend of $0.25 per share, payable on June 2, 2025, to shareholders of record as of May 12, 2025. This dividend announcement underscores the company’s financial health and commitment to returning value to shareholders. Furthermore, at its 2025 annual meeting, Enterprise Bancorp shareholders confirmed all board-nominated directors for a three-year term and approved the executive compensation plan. They also ratified the appointment of RSM US LLP as the company’s independent accounting firm for the fiscal year ending December 31, 2025. These developments reflect active shareholder engagement and confidence in Enterprise Bancorp’s leadership and strategic direction.
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