Pinnacle in Tenn. to buy Synovus in Ga. for $8.6 billion

Pinnacle Financial Partners in Nashville, Tenn., has agreed to buy Synovus Financial in Columbus, Ga.

The $54.8 billion-asset Pinnacle said in a press release that it will pay $8.6 billion in stock for the $61 billion-asset Synovus. The deal is expected to close in the first quarter.

Pinnacle shareholders will own about 51.5% of the combined company, which will operate under the Pinnacle Financial Partners and Pinnacle Bank name and brand. The corporate headquarters will be in Atlanta.

Kevin Blair, Synovus’ chairman, president and CEO, will become president and CEO. Terry Turner, Pinnacle’s president and CEO, will serve as chairman. Eight of the board’s 15 directors will come from Pinnacle.

The deal is expected to be about 21% accretive to Pinnacle’s 2027 earnings per share, including cost savings. It should take less than three years for Pinnacle to earn back any dilution to its tangible book value.

“We are pleased to join forces with Synovus in a combination that prioritizes client experience and inspires associates,” Turner said in the release. “By combining Pinnacle’s operating model, which is anchored in a disciplined entrepreneurial spirit, with Synovus’ talented team and strong presence in attractive and fast-growing Southeastern markets, we will extend our legacy of building share in the most attractive markets nationally.”

Pinnacle expects to incur $675 million in merger-related expenses. It plans to cut about 10% of the combined company’s annual noninterest expense, or around $250 million of run-rate net expense savings.