UPDATE: KeyCorp to Acquire First Niagara Financial Group for $11.40/Share in Cash, Stock

KeyCorp KEY and First Niagara Financial Group  FNFG announced today that they have entered into a definitive agreement under which KeyCorp will acquire First Niagara in a cash and stock transaction for total consideration valued at approximately $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 approximately $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 attractive markets throughout Pennsylvania, Massachusetts and Connecticut.  Under the terms of See full press release