Synovus Financial will acquire FCB Financial Holdings, owner of Florida Community Bank, in an all-stock transaction valued at approximately $2.9 billion.
With the acquisition of FCB, Synovus will become a top five regional bank in the Southeast region with pro forma $36 billion in deposits, $44 billion in assets and an additional 50 full-service banking centers in Florida.
Following the closing, FCB will merge with Synovus Bank and operate under the Synovus brand, and FCB Financial Holdings President and CEO Kent Ellert will become executive vice president of Synovus and Florida market president.
Under the terms of the merger agreement, FCB shareholders will receive a fixed ratio of 1.055 shares of Synovus common stock for each common share of FCB in an all-stock transaction. At close, former FCB shareholders will own approximately 30% of the combined company.
“We look forward to welcoming FCB customers and team members to the Synovus family and are enormously excited about the growth and value-creation opportunities this transaction presents for our combined companies and respective shareholders,” said Kessel Stelling, Synovus chairman and CEO. “This acquisition will expand our presence in the high-growth South Florida marketplace while leveraging FCB’s market leading reputation, culture, and successful organic growth platform.”
The merger was unanimously approved by both companies’ boards of directors. The transaction is expected to close by the first quarter of 2019, subject to customary closing conditions, including regulatory approval and Synovus and FCB shareholder approval.
Bank of America Merrill Lynch and JPMorgan Securities served as financial advisors to Synovus on this transaction, while Simpson Thacher & Bartlett and Alston & Bird served as legal advisors. Sandler O’Neill + Partners, Guggenheim Securities and Evercore Group served as financial advisors to FCB Financial Holdings, while Wachtell, Lipton, Rosen & Katz served as its legal advisor.