By Prakhar Srivastava and Akash Sriram
(Reuters) -Pinnacle Financial Partners and Synovus Financial have 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.
The agreed exchange ratio values Synovus shares at $61.18 apiece, the companies said on Thursday. That represents a premium of about 10% to the company’s closing stock price of $55.53 on Monday, before media reports of the deal.
Shares of Synovus dropped 8.3% to $52 in extended trading, while Pinnacle fell 6%. Synovus had risen 7.3% on Tuesday after Bloomberg News reported the lender was exploring strategic options, including a potential merger.
Interest in bank mergers has grown as regulators under the Trump administration take a more favorable stance to dealmaking.
“This could this be the first domino in a new round of ‘rack ’em and stack ’em’. A friendlier regulatory environment may help mint several new trillion‑dollar megabanks over the next decade, figuratively making Wall Street even more competitive,” said Michael Ashley Schulman, partner at Running Point Capital Advisors.
In May, the Office of the Comptroller of the Currency (OCC) issued an interim final rule restoring faster review and simpler applications for bank mergers.
Dealmakers expect bank M&A activity to climb in the second half of the year. Activity has been broadly flat this year and was concentrated mostly among smaller lenders, according to data from S&P Global Market Intelligence.
DEAL TERMS
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.
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 combined entity will operate under the Pinnacle Financial Partners and Pinnacle Bank name and brand, the companies said.
The deal is expected to close in the first quarter of 2026, subject to regulatory and shareholder approvals.
(Reporting by Prakhar Srivastava and Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi and Devika Syamnath)
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