The deal, approved over the weekend by both banks’ boards of directors, still needs approval from regulators and shareholders. It’s expected to close in the third quarter of 2020.
The terms of acquisition say Commerce State Bank shareholders will receive 1.15 shares of Nicolet stock for her every share of Commerce stock. On Friday at the end of trading, Nicolet stock was priced at $73.32 per share on the Nasdaq. The agreement calls for resetting the exchange ratio if Nicolet stock drops below $62 or rises above $82 per share.
With the purchase of Commerce State Bank, the Green Bay-based bank’s reach will extend not only to West Bend, but also Sheboygan and the Milwaukee suburbs, and its assets will increase to $4.3 billion.
The deal follows three recent acquisitions by Nicolet that have made it the third-largest bank headquartered in Wisconsin after Johnson Bank and Associated Bank. Nicolet purchased Baylake Bank of Door County in 2016, FNB-Fox Valley Bank in Menasha in 2018 and Oshkosh-based Choice Bank in 2019.