In February, Green Bay-based Nicolet announced plans to buy Commerce, which is based in West Bend, in a $129.6 million, all-stock deal. This week, Nicolet notified the U.S. Securities and Exchange Commission it planned to terminate the deal.
The pandemic created “an unacceptable degree of uncertainty for both parties” for the purchase to move forward, Nicolet President and CEO Mike Daniels said in a statement.
The termination agreement calls for Nicolet to pay Commerce a $500,000 lump-sum payment to help the bank address “the costs and negative impact” of entering into the merger agreement. Nicolet also will transfer 4,000 shares of Commerce stock it owns back to the bank.
The merger agreement gave either bank the right to end the deal if Nicolet’s stock traded below $62 per share at the time of the deal’s closing. Nicolet is listed on the NASDAQ Composite Index and has not traded at more than $62 per share since March 10. When the acquisition was announced, Nicolet’s share price was $72.32.