First Interstate BancSystem, Great Western Bancorp To Merge In All Stock Deal

(RTTNews) - First Interstate BancSystem, Inc. (FIBK), parent company of First Interstate Bank, and Great Western Bancorp, Inc. (GWB), parent company of Great Western Bank, announced Thursday that they have entered into a definitive agreement under which the companies will combine in an all stock transaction.

Under the deal terms, GWB shareholders will receive .8425 shares of FIBK Class A common stock for each GWB share they own. The implied total transaction value based on closing prices on September 15 is approximately $2.0 billion.

Following completion of the transaction, GWB shareholders will collectively own 43% of the combined company. GWB will merge into FIBK and the combined holding company and bank will operate under the First Interstate name and brand.

The deal has been unanimously approved by both companies' Boards of Directors.

The transaction is expected to close during the first calendar quarter of 2022, subject to regulatory and shareholder approvals.

Upon the deal closure, five directors from GWB will join the FIBK Board of Directors. The conversion of GWB branches to FIBK branches is expected to take place during the second calendar quarter of 2022.

With assets totaling over $32 billion, the pro forma company establishes FIBK as the premier banking franchise in the West.