Old National Bancorp has signed a definitive agreement to merge its operations with First Midwest Bancorp.
The all-stock merger of equals transaction is expected to be valued at around $6.5bn.
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The move will create a premier Midwestern bank in the US with total assets of around $45bn.
Transaction Details:
As agreed, First Midwest stockholders will receive 1.1336 shares of Old National common stock for each First Midwest common stock they own.
The combined organisation will operate as Old National Bancorp with dual headquarters in Evansville, Indiana and Chicago, Illinois.
Old National Bancorp chairman and CEO Jim Ryan will continue as the chief executive of the combined company. First Midwest Bancorp chairman and CEO Michael Scudder will serve as the executive chairman.
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By GlobalDataOverall, the Board of Directors of the combined company will have 16 members, eight each from the two companies.
The merger is expected to close in late 2021 or early 2022, subject regulatory and shareholder approvals.
Once complete, former First Midwest stockholders are expected to own nearly 44% of the combined company.
Benefits of the merger:
The merger will create the sixth largest bank headquartered in the Midwest with a larger balance sheet and stronger footprint.
The combined lender will focus on consumer, wealth management and commercial banking services. It is also expected to have a broader product portfolio and greater technological capability to drive investments.
Quote:
Jim Ryan said: “We are confident that the powerful synergies, additional market coverage and financial strength this partnership creates will drive long-term shareholder value, and we are excited about combining the outstanding legacies of two strong, client- and community-focused organisations.”
