KeyCorp acquires First Niagara in $4.1 billion transaction

CLEVELAND — Cleveland-based KeyCorp and First Niagara Financial Group today announced that they have entered into a definitive agreement for KeyCorp to acquire First Niagara in a cash-and-stock transaction valued at nearly $4.1 billion.

First Niagara, headquartered in Buffalo, N.Y., has $39 billion in assets and $29 billion in deposits and 394 banking offices in New York, Pennsylvania, Connecticut and Massachusetts. With about $135 billion of assets, the combined bank will be the 13th-largest commercial bank headquartered in the U.S.

The combination will create a leading regional bank with enhanced scale to serve three million clients across diverse markets in the Northeast, mid-Atlantic, Midwest and Pacific Northwest. The acquisition will make KeyCorp a leading bank in upstate New York, with a strong market presence in Buffalo, Albany, Syracuse and Rochester.

KeyCorp will also expand its operations to markets throughout Pennsylvania, Massachusetts and Connecticut.