Shares of MidWestOne Financial Group (MOFG) skyrocketed 37.20% in Friday's trading session following the announcement of its acquisition by Nicolet Bankshares (NIC) in an all-stock transaction valued at approximately $864 million. The deal, which sent shockwaves through the regional banking sector, represents a significant consolidation move in the Upper Midwest financial landscape.
Under the terms of the agreement, MidWestOne shareholders will receive 0.3175 shares of Nicolet common stock for each share of MidWestOne they own. This values MidWestOne at $41.37 per share, representing a substantial 45.8% premium to its previous closing price. The merger is expected to create one of the largest banks in the Upper Midwest, with pro forma total assets of $15.3 billion, positioning the combined entity as a formidable player in the region.
Investors reacted enthusiastically to the news, driving MidWestOne's stock to its highest levels since December 2016. The deal is anticipated to be approximately 37% accretive to Nicolet's 2026 earnings, excluding merger-related charges, which likely contributed to the positive market reaction. Upon completion of the merger, MidWestOne shareholders are expected to own about 30% of the combined company, giving them a significant stake in the enlarged entity's future growth prospects.