Pinnacle Financial Partners and Synovus Merge in $8.6 Billion Deal

Pinnacle Financial Partners and Synovus Financial have announced a definitive agreement to merge in an all-stock transaction valued at $8.6 billion. This strategic consolidation will create one of the largest regional banking institutions in the southeastern United States, with the newly combined entity managing more than $115 billion in total assets.

Valuation Reflects Premium for Synovus Shareholders

The terms of the merger place a valuation of $61.18 per share on Synovus stock, representing an approximate 10% premium over its most recent closing price of $55.53. Despite this premium, shares of Synovus dropped to $52 in after-hours trading, a decline of 8.3%, while Pinnacle shares also dipped by 6%. Earlier in the week, Synovus had seen a sharp rise of 7.3% following speculation about potential strategic shifts, spurred by a Bloomberg report hinting at a possible merger.

Regulatory Climate Encouraging Dealmaking

This announcement arrives at a time when interest in bank mergers is experiencing a resurgence, particularly under a more accommodative regulatory framework shaped by the prior Trump administration. While overall banking M&A activity has remained largely stagnant in recent months, momentum is expected to build in the latter half of the year. According to data from S&P Global Market Intelligence, much of the activity to date has been confined to smaller financial institutions, making this merger a notable development in the sector.

Ownership Structure of the New Entity

Upon completion of the merger, a newly established parent company will oversee operations. Pinnacle shareholders will hold a slight majority, owning approximately 51.5% of the new entity, while Synovus shareholders will retain a 48.5% stake. This near-equal ownership ratio suggests a merger of equals in strategic intent, aimed at creating a more competitive and diversified financial services firm.

Leadership to Reflect Combined Strengths

The executive leadership of the merged company will reflect a blend of both institutions. Kevin Blair, the current CEO of Synovus, will assume the roles of CEO and president of the new organization, while Terry Turner, Pinnacle’s CEO, will take on the position of chairman. This leadership structure is designed to ensure continuity while leveraging the strengths and insights of both management teams.

Brand Identity and Forward Timeline

Despite the merger, the combined entity will retain the Pinnacle Financial Partners and Pinnacle Bank name and brand. This branding decision highlights the strength and market recognition Pinnacle brings to the table, and signals an intention to build on its established reputation. The companies expect the deal to close in the first quarter of 2026, pending regulatory review and approval from shareholders.

This merger signals a bold strategic bet on the future of regional banking, one that reflects both the pressures and the opportunities present in today’s evolving financial services landscape.