KEYCORP /NEW/ acquisition history

First Niagara, headquartered in Buffalo, N.Y., was a regional bank with approximately $39 billion in assets, $29 billion in deposits and 394 banking offices across New York, Pennsylvania, Connecticut and Massachusetts. KeyCorp acquired it in a cash-and-stock transaction valued at approximately $4.1 billion, creating what was then the 13th largest U.S.-headquartered commercial bank with roughly $135 billion in pro forma assets and around three million clients. approximately $4.1 billion.

Key and First Niagara are a powerful combination, driven by a shared commitment to the clients and to the communities we serve. This transformational opportunity will bring compelling and complementary capabilities to our shared 3 million clients, while driving meaningful synergies and enhancing shareholder value.Beth Mooney — Chairman and CEO, KeyCorp

I am confident that the combination of First Niagara and Key will benefit our shareholders, customers and the communities we serve and will build off the great progress that the First Niagara team has made.Nathaniel D. Woodson — Chairman of the Board, First Niagara Financial Group

On July 1, 2017, KeyBank acquired all of the outstanding capital stock of HelloWallet Holdings, Inc., the sole owner of HelloWallet, LLC, a digital financial wellness company, from Morningstar, Inc. HelloWallet's personal-finance software platform lets users gauge a financial wellness score and receive practical, user-friendly financial insights.

KeyBank is transforming our clients' banking experience by embedding financial wellness into every interaction, whether digitally, at the branch, or via telephone.Dennis Devine — Co-President, KeyBank Community Bank

KeyBank believes strongly in HelloWallet's potential and is able to give HelloWallet the level of focus and investment that it needs.Brock Johnson — Head of Global Retirement and Workplace, Morningstar, Inc.

On October 2, 2017, KeyBanc Capital Markets (KBCM) acquired all outstanding interests in Cain Brothers, a healthcare-focused investment banking and public finance firm headquartered in New York City. Cain Brothers is recognized as a leading middle-market healthcare M&A advisory and financing firm serving for-profit and not-for-profit healthcare organizations.

On April 3, 2019, KeyBank acquired Laurel Road's digital lending business from Laurel Road Bank. Laurel Road, based in New York City, operated a digital lending platform best known for student loan refinancing (launched 2013, with more than $4 billion in originations) plus online mortgage and consumer lending. Laurel Road Bank's three bank branches in southeast Connecticut were not part of the transaction.

We are thrilled to have the opportunity to partner with Laurel Road and to continue expanding their business.Chris Gorman — Vice Chair and President of Banking, KeyCorp

We are excited to combine our technological expertise with Key's industry expertise.Gary Lieberman — Founder and Chairman, Laurel Road

On November 19, 2021, KeyBank acquired XUP Payments, a B2B-focused digital payments platform headquartered in Charlotte, North Carolina. XUP's banking-as-a-service technology enables simple, intuitive client onboarding and servicing, with integrations across processors, third-party risk tools, CRM systems and other fintech services so banks can offer a more integrated, seamless payments experience. Key had been an early investor and co-led XUP's $3 million seed round.

We've long embraced the software innovation that's sweeping through the financial services industry.Ken Gavrity — Head of Enterprise Payments & Analytics, KeyBank

Our end-to-end software solutions, combined with Key's scale and deep financial services expertise, will perfectly blend to provide clients a best-in-class payment experience.Chris May — President, XUP Payments

On May 2, 2022, KeyBank acquired GradFin, one of the nation's leading Public Service Loan Forgiveness counseling providers, founded in 2015 and headquartered in Philadelphia, Pennsylvania. GradFin offers high-touch advisory solutions for individuals managing student loan debt, with a focus on working with financial advisors and their clients. Consideration totaled $72 million, consisting of $62 million in cash and $10 million in contingent consideration. $72 million (≈$62M cash + $10M contingent consideration).

GradFin combines the best of digital and human interaction to create a unique client experience.Jamie Warder — Head of Digital, KeyCorp

We're excited to become part of the Key team because of their exceptional track record in acquiring and growing fintech companies.Chris Walters — CEO, GradFin

Clearwater UK is a UK-based middle-market investment banking advisory firm. KeyCorp agreed to acquire it to enter the Western European market and broaden the M&A and financial advisory services its KeyBanc Capital Markets unit provides to middle-market and institutional clients. The transaction builds on a collaboration agreement the two firms established in 2020.

Pacific Crest Securities was a technology-focused investment bank and capital markets firm. KeyCorp acquired it to strengthen the technology-sector coverage of its corporate and investment banking business. Following the close, Pacific Crest's broker-dealer was integrated into KeyBanc Capital Markets, where it served as the technology specialists for the combined platform.

KeyBank acquired 37 retail banking branches in the Buffalo and Rochester, New York markets originally owned by HSBC Bank USA (divested by First Niagara Bank in connection with First Niagara's purchase of HSBC's upstate New York franchise). The branches added approximately $2.1 billion in deposits and about $260 million in loans, and brought Key's branch count in those markets to roughly 100. The purchase-and-assumption agreement was signed in January 2012.