Matt Crane with the Dubois County Free Press contributed to this report.
AREA-WIDE -- German American Bancorp has announced a merger with First Security, Inc., expanding the local company’s presence into Kentucky.
Under terms of the agreement, First Security shareholders will receive a fixed exchange ratio of shares of German American common stock for each share of First Security in a tax free exchange, and a cash payment of $12.00 per First Security share.
The transaction is expected to be completed in the fourth quarter of 2018.
Completion of the transaction is subject to approval by regulatory authorities and First Security’s shareholders, as well as certain other closing conditions.
In connection with the agreement, German American entered into voting agreements with the members of the Board of Directors of First Security, along with principal shareholders, who collectively hold approximately 27% of the outstanding shares of First Security common stock.
Subject to the terms and conditions of the voting agreements, these parties have agreed to vote their shares in favor of the transactions contemplated by the definitive agreement.