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JASPER, Ind., Oct. 1, 2013 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq:GABC) announced today that it has completed the previously announced merger transaction with United Commerce Bancorp, the parent company of United Commerce Bank, of Bloomington, Indiana. United Commerce merged into German American effective October 1, 2013, followed immediately by the merger of United Commerce Bank with and into German American's banking subsidiary.
Under the terms of the merger, United Commerce shareholders received a combination of approximately $12.7 million in GABC stock and $1.4 million in cash consideration representing a total transaction value of approximately $14.1 million. The basic transaction value excludes the indicated value of the approximately 4.6% interest of German American in United Commerce's outstanding stock and the approximately $640 thousand in cash payments made in cancellation of dilutive stock options and warrants.
Each United Commerce common shareholder of record on October 1st became entitled to receive 0.5456 shares of German American common stock plus a cash payment of $1.51 for each of their former shares of United Commerce common stock, subject to his or her surrender of the old United Commerce certificates to the exchange agent designated by German American. Instructions and forms to accomplish that surrender and exchange process are being mailed by the exchange agent to each of United Commerce's shareholders of record as of the Effective Time.
The transaction, which is expected to be accretive to German American's earnings per share within the first twelve months following the transaction, expands German American's existing footprint in the South Central Indiana market of Bloomington, Indiana, which is the home of Indiana University.
Mark A. Schroeder, Chairman and CEO of German American, stated, "We are delighted to welcome United Commerce's customers, employees and shareholders to German American. This transaction provides an excellent opportunity for German American to enhance our presence in the Bloomington market (which has been served by United Commerce since January 2000 and German American since February 2007) through the combination of our two institutions' strong market franchises. This merger positions German American very well within the Bloomington market through the combined strength of German American's and United Commerce's existing exceptional teams of local financial professionals and solid base of deposit and loan clients."