Pinnacle, Synovus Agree to $8.6 Billion Regional Bank Deal. Investors Really Don’t Like It.

The Synovus-Pinnacle merger deal represents a 10% premium to Synovus on an unaffected basis and values the company at $61.18 per share. (© Calvin L. Leake | Dreamstime.com)

Pinnacle Financial Partners and Synovus Financial have agreed to merge in an all-stock deal valued at $8.6 billion, to create one of the largest banks in the Southeast, the companies said late Thursday.

The deal values Synovus at $61.18 per share, representing a 8% premium to the stock’s Thursday closing price. The transaction is expected to add some 21% to Pinnacle’s operating earnings per share by 2027.

Investors don’t seem too impressed. Synovus stock fell 15% to $48.17 in early trading Friday, while Pinnacle dropped 16% to $87.18.

The combined company will operate under the Pinnacle name and ticker, while Synovus CEO Kevin Blair will take up the role as new CEO, the two companies said in a joint statement after the bell Thursday. Current Pinnacle CEO Terry Turner will serve as chairman.

Write to Elsa Ohlen at elsa.ohlen@barrons.com