According to a statement released on Thursday, as part of the largest banking deal of 2025, Synovus and Pinnacle shares will be converted into shares of a new parent company, Pinnacle. Synovus shareholders will own about 48.5% and Pinnacle shareholders will own about 51.5% of the combined entity. The deal involves a premium of about 10% for Synovus shareholders.
Bloomberg News reported earlier this week that Synovus was considering possible options after interest from other players.
Still, shares of both companies fell more than 2% in New York trading on Thursday, a decline partly because investors had expected both companies to be the targets of acquisitions by larger regional banks, which could command a higher premium than a merger of two companies of similar size, said Jeff Davis, managing director at financial advisory firm Mercer Capital.
“Wall Street loves deals with a premium for the seller, and is much more cautious about mergers of equals,” Davis noted.
Pinnacle, headquartered in Nashville, and Synovus, based in Columbus, Georgia, have complementary branch networks throughout the southeastern U.S. Each company has a market capitalization of about $8 billion.
The deal is expected to be accretive to Pinnacle’s adjusted earnings per share by approximately 21% through 2027, according to the filing. The transaction is scheduled to close in the first quarter of 2026, subject to shareholder and regulatory approvals.
Synovus CEO Kevin Blair will become CEO of the combined company, while Terry Turner, who has led Pinnacle since its founding in 2000, will take over as chairman of the board. The combined entity will operate under the Pinnacle brand.
“This merger creates a complementary presence that fits together like a puzzle,” Blair said during a conference call. “It covers high-growth markets and creates a solid foundation for sustained success. It also allows us to focus resources on tier-one markets.”
Source: Bloomberg