Webster Financial Corp. (NYSE:WBS) announced that its principal bank subsidiary, Webster Bank N.A., is acquiring StoneCastle Insured Sweep LLC, which does business as interLINK.
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 financial terms of the acquisition were not disclosed. Webster stated that interLINK “will continue to operate and serve its broker/dealer and clearing firm clients as it does today,” although it did not say if there would be changes in its leadership or workforce.
“The acquisition complements our strategy to build a bank with diverse funding capabilities and technology-enabled businesses,” said John Ciulla, president and CEO of Webster Financial Corporation. “interLINK is a unique deposit channel that provides a scalable source of liquidity for the company.”
