Financial institutions Pinnacle and Synovus will merge in a deal worth $8.6 billion.
Pinnacle Financial and Synovus Financial Announce Merger
In a significant move for the financial services industry, Pinnacle Financial (NASDAQ:PNFP) and Synovus Financial (NYSE:SNV) have announced an agreement to combine. The merger, valued at $8.6 billion, is an all-stock transaction with Pinnacle Financial shares being exchanged for shares of Synovus Financial at a ratio of 0.5237 Synovus shares per Pinnacle share. This valuation offers an approximate 10% premium to Synovus shareholders on an unaffected basis.
The merger is subject to regulatory approvals and other customary closing conditions. If successful, the combined entity is expected to close in the second half of 2023. The combined entity will continue to be listed on the NASDAQ and NYSE under the symbols PNFP and SNV, respectively.
The merger is expected to create synergies and enhance shareholder value for both companies. The combined entity will be a significant player in the financial services industry, boasting a substantial presence. Despite the merger, the companies have assured that it is not expected to result in any significant layoffs or branch closures.
Following the announcement, shares of Synovus Financial fell 9.2% in after hours trading, while shares of Pinnacle Financial dropped 5%. Shares of Synovus Financial fell an additional 9.2% in after hours trading following the announcement of the exact share exchange ratio. The exact terms and conditions of the merger, including the exchange ratio, have not been disclosed.
The merger is expected to result in a combined entity with a market value of approximately $8.6 billion. The combined entity will have a significant presence in the financial services industry, positioning it to make a significant impact in the sector.
[1] Source: BusinessWire [2] Source: Yahoo Finance [3] Source: Seeking Alpha
This merger between Pinnacle Financial and Synovus Financial, valued at $8.6 billion, is anticipated to create synergies and enhance shareholder value in the business and investing world. Once completed, the combined entity will be a significant player in the financial services industry, leveraging its substantial presence for a meaningful impact on the sector. [1] [2] [3]
