Reuters    •   3 min read

Pinnacle Financial Partners and Synovus Financial to merge in $8.6 billion deal

WHAT'S THE STORY?

(Reuters) -Pinnacle Financial Partners and Synovus Financial agreed to merge in an $8.6 billion all-stock deal, forming one of the largest regional banks in the Southeastern United States with over $115 billion in combined assets.

Shares of Synovus Financial fell 8% in after-hours trading.

Interest in bank mergers has grown as Trump-appointed regulators signal a more favorable stance, contrasting with skepticism under the Biden administration.

The deal could spark a wave of consolidation across the

AD

industry, as regional banks scramble to secure partners of their own in a bid to remain competitive and resilient.

The agreed exchange ratio values Synovus Financial's shares at $61.18, implying a transaction worth $8.6 billion. The valuation represents a roughly 10% premium to the company's closing stock price of $55.53 on Monday, before media reports of the deal.

The transaction is expected to boost Pinnacle Financial Partners' estimated operating profit by about 21% in 2027.

The merger will create a major regional bank, leveraging the combined strengths of Synovus and Pinnacle in commercial, retail and wealth management services.

Under the terms of the deal, shareholders of both companies will receive stock in a newly formed parent entity, with Pinnacle shareholders owning about 51.5% and Synovus shareholders holding about 48.5% of the combined company.

The combined entity will operate under the Pinnacle Financial Partners and Pinnacle Bank name and brand, the companies said.

Kevin Blair, currently CEO of Synovus, will lead the new company as CEO and president, while Pinnacle CEO Terry Turner will serve as chairman.

The deal, valued at $8.6 billion, is expected to close in the first quarter of 2026, subject to regulatory and shareholder approvals.

Synovus' shares rose 7.3% on Tuesday after Bloomberg News reported that the lender was exploring strategic options, including a potential merger, following takeover interest.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Mohammed Safi Shamsi)

AD
More Stories You Might Enjoy