Shares of MidWestOne Financial Group (NASDAQ: MOFG) surged 27.32% in pre-market trading on Friday following the announcement of its acquisition by Nicolet Bankshares (NASDAQ: NIC) in an all-stock transaction valued at approximately $864 million.
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.
The deal is anticipated to be approximately 37% accretive to Nicolet's 2026 earnings, excluding merger-related charges. Upon completion of the merger, MidWestOne shareholders are expected to own about 30% of the combined company. The transaction, which has been approved by both companies' boards of directors, is projected to close in the first half of 2026, subject to customary closing conditions including regulatory and shareholder approvals.