08:24 AM EST, 12/09/2024 (MT Newswires) -- Independent Bank (INDB) and Enterprise Bancorp ( EBTC ) said Monday they have signed a merger agreement under which Enterprise will merge into Independent Bank for a cash and stock transaction of roughly $562 million, or $45.06 per share.

Enterprise's Enterprise Bank unit will also merge into Independent's Rockland Trust subsidiary as part of the deal, according to a joint statement.

Under the terms, Enterprise stockholders will get 0.6 shares of Independent common stock and $2 in cash for each share of Enterprise common stock they own, the companies said.

Independent plans to issue about 7.5 million shares of its common stock, pay $27.1 million in cash, and raise about $250 million in subordinated debt before the transaction is completed, according to the companies.

The boards of both companies have unanimously approved the merger, which is expected to be completed in H2 next year and be about 16% accretive to Independent's earnings per share in 2026, the first full year of combined operations, the companies added.

Independent Bank's stock was up 1% in recent Monday premarket activity, while shares of Enterprise Bancorp ( EBTC ) rose 10%.