US banks merge in $8.6bn deal

BY Richard Summerfield

Two US banking organisations – Pinnacle Financial Partners and Synovus Financial Corp – have reached an agreement to merge in an all-stock transaction valued at $8.6bn. The deal will see the creation of the highest-return regional bank in the southeastern US.

The deal, which is expected to close in Q1 2026, subject to regulatory and shareholder approvals, and which is the biggest bank deal to be announced so far this year, will see Synovus and Pinnacle shares converted into stock of a new Pinnacle parent company.

Under the terms of the deal, the shares of Synovus and Pinnacle shareholders will be converted into shares of a new Pinnacle parent company based on a fixed exchange ratio of 0.5237 Synovus shares per Pinnacle share. This exchange ratio represents a Synovus per share value of $61.18, a transaction value of $8.6bn and an approximate 10 percent premium to Synovus on an unaffected basis. Upon completion. Synovus shareholders will own about 48.5 percent of the new company; Pinnacle shareholders will have roughly 51.5 percent.

Kevin Blair, chief executive of Synovus, will continue in that role for the newly combined entity. Terry Turner, who has been chief executive of Pinnacle since its founding in 2000, will serve as chairman. The combined entity will be operated under the Pinnacle brand.

“Over the last 25 years, we have attracted extraordinary talent to a bank that closely partners with its clients, developing ‘raving fans’ and delivering industry-leading growth,” said Mr Turner. “We are pleased to join forces with Synovus in a combination that prioritizes client experience and inspires associates. 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.”

“We are two high-performing institutions with one powerful future,” said Mr Blair. “Our belief in the success of this merger is grounded in a decade of strong results and proven execution from both companies, each delivering top-tier earnings and total shareholder returns. Building on a rich tradition of service and accelerating momentum, Synovus is well-positioned for growth. Together with Terry and the Pinnacle team, we are primed for continued outperformance, as we are not just combining forces – we are multiplying our impact.”

The companies noted that their merger focuses on the fastest-growing markets in the southeastern US. Pinnacle operates its banking business from Nashville, Tennessee and manages $54.8bn in assets. Synovus, headquartered in Georgia, oversees approximately $61bn in assets through its network of 244 branches, which span Alabama, Florida, South Carolina, Tennessee and Georgia.

In a 16 July earnings release, Synovus said that it delivered 28 percent year-over-year growth in adjusted earnings per share in the second quarter. On 15 July, Pinnacle said in its earnings release that its fully diluted earnings per share after adjustments were up 22.7 percent year over year. The bank also reported that it was “very active on the recruiting front” and had expanded into Richmond, Virginia.

News: Pinnacle Financial Partners, Synovus Financial to merge in $8.6 billion deal

Corpay agrees $2.2bn Alpha Group acquisition

BY Richard Summerfield

Corporate payments group Corpay Inc has agreed to acquire British financial services provider Alpha Group in a $2.2bn all-cash deal.

Under the terms of the deal, Alpha shareholders will receive £42.50 per share, representing a 55 percent premium to Alpha’s undisturbed closing share price on 1 May 2025. The terms of the acquisition value the entire issued and to-be-issued ordinary share capital of Alpha at approximately $2.4bn. The acquisition is to be affected by means of a court-sanctioned scheme of arrangement under part 26 of the UK Companies Act 2006.

Alpha’s board intends to unanimously and unconditionally recommend that its shareholders vote in favour of the scheme at the court and general meetings. Morgan Tillbrook, Alpha founder and former chief executive and a significant shareholder, has signed an irrevocable undertaking in support of the transaction as well. The deal is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approval and standard closing conditions. The deal is to be funded through a combination of cash, debt, bank capital optimisation and non-core divestitures.

“We couldn’t be happier to acquire Alpha,” said Ron Clarke, chairman and chief executive of Corpay. “This transaction meaningfully expands our relationships with investment managers and results in four Cross Border customer segments: corporates, financial institutions, investment funds and digital currency providers.

“We’re acquiring Alpha for three reasons,” he continued. “First, it’s a large, highly complementary, fast-growing corporate payments asset with good prospects. Second, Alpha is a leading provider of alternative bank accounts to European-based investment managers. There is significant runway to expand those investment manager relationships into the US and Asia with our help. The banking account product and Alpha’s technology extend our Cross Border solution set and further diversify our revenue streams. And third, we expect the acquisition to be meaningfully EPS accretive in 2026.”

“We’re delighted to consummate this transaction with Corpay,“ said Clive Kahn, chief executive of Alpha Group. “Corpay’s position as the leading non-bank provider of B2B cross border solutions is the perfect home for our people and will broaden their career prospects over time. Additionally, Corpay’s global footprint, licenses, bank relationships, technology, and balance sheet will accelerate our growth momentum, particularly in our institutional investor business.”

Corpay said the acquisition will boost its cross-border payments strategy by combining Alpha’s advisory-led European foreign exchange and private markets business with its own scale and platform. The company expects the deal to be accretive to cash earnings per share by at least $0.50 in 2026 and to generate significant revenue and cost synergies.

News: Payments firm Corpay signs $2.2 billion deal for UK's Alpha Group

Waters acquires BD's biosciences unit in $17.5bn deal

BY Fraser Tennant

In a transaction that creates an innovative life science and diagnostics leader, US laboratory equipment maker Waters is to acquire medical technology firm Becton Dickinson (BD) for approximately $17.5bn.

Under the terms of the definitive agreement, BD’s shareholders will own approximately 39.2 percent of the combined company, and existing Waters shareholders are expected to own approximately 60.8 percent. BD will also receive a cash distribution of approximately $4bn prior to completion of the combination, subject to adjustment for cash, working capital and indebtedness.

The transaction, which has been unanimously approved by the boards of directors of both Waters and BD, is structured as a Reverse Morris Trust, where BD’s Biosciences & Diagnostic Solutions business will be spun-off to BD shareholders and simultaneously merged with a wholly owned subsidiary of Waters.

“This transaction marks a pivotal milestone in Waters’ transformation journey as we embark on a new chapter of growth and value creation,” said Flemming Ornskov, chairman of Waters. “We are confident that this combination will accelerate our strategy in multiple high-growth markets and deliver substantial near- and long-term value to our shareholders.”

The acquisition gives Waters greater scale, doubling its total addressable market to about $40bn, with a 5 to 7 percent annual growth rate. Additionally, over 70 percent of the combined company’s revenue is expected to be recurring annually and over half of instrument revenue is expected to be recurring within a typical five- to 10-year replacement cycle.

“This transaction is an important milestone for BD, as it enhances our strategic focus as a leading medical technology company,” said Tom Polen, chairman and chief executive of BD. “BD is committed to unlocking long-term value through continued investment in our strong innovation pipeline, and operational and commercial excellence that will drive durable and profitable growth.”

The transaction is expected to close around the end of the first quarter of 2026, subject to receipt of required regulatory approvals, Waters shareholder approval and satisfaction of other customary closing conditions.

“We are bringing together two pioneering organisations with a rich history of delivering breakthrough innovations driven by strong R&D investment and a common customer-centric culture,” said Udit Batra, president and chief executive of Waters. “Together, we will work to make this combination a resounding success for our stakeholders and deliver significant value for shareholders.”

News: Waters to buy Becton unit in a $17.5 billion deal amid tariff pressures

Huntington Bancshares agrees $1.9bn Veritex deal

BY Richard Summerfield

In a move to strengthen its position in Texas, Huntington Bancshares has agreed to acquire its smaller rival Veritex Holdings in an all-stock transaction valued at $1.9bn.

The merger is expected to close in the fourth quarter of 2025 and will see Veritex merge into Huntington, with Huntington continuing as the surviving entity. This strategic acquisition is anticipated to accelerate Huntington’s organic growth initiatives and bolster its market position in Texas, one of the fastest-growing economies in the US. Dallas-based Veritex operates over 30 branches in Texas, with total assets of about $13bn.

Under the terms of the agreement, Huntington will issue 1.95 shares for each outstanding share of Veritex in a 100 percent stock transaction. Based on Huntington’s closing price of $17.39 as of 11 July 2025, the consideration implies $33.91 per Veritex share or an aggregate transaction value of $1.9bn.

“This combination supports our ambitions and reflects our long-term commitment to the state of Texas, one of the most dynamic and fastest-growing economies in the country,” said Steve Steinour, chairman, president and chief executive of Huntington Bancshares. “The Veritex team brings deep local relationships, a strong commercial banking franchise and customer loyalty, and this partnership will serve as a springboard for substantial future growth in the state.”

“Veritex has always been a people and community focused bank,” said Malcolm Holland, chairman, president and chief executive of Veritex. “We have found a partner in Huntington Bank who shares and lives out those same values. We are very excited about becoming part of the Huntington family and bringing more capabilities to our Texas clients than ever before.”

Upon completion of the deal, Mr Holland will join Huntington in a non-executive role as chairman of Texas and continue his work to serve local customers and communities.

At the same time as the announced deal for Veritex, Huntington reported strong preliminary second-quarter results for 2025, with significant growth in loans, deposits and net interest income, reflecting its robust financial performance.

Huntington Bancshares has around $210bn in assets. Founded in 1866, the company provides a comprehensive suite of banking, payments, wealth management and risk management products and services to consumers, small and middle-market businesses, corporations, municipalities and other organisations. Huntington operates 968 branches across 13 states in the US.

News: Huntington Bancshares signs $1.9 billion deal for rival Veritex in Texas push

Athora to acquire PICG in £5.7bn deal

BY Fraser Tennant

In a landmark UK pension deal, pan-European savings and retirement services group Athora is to acquire specialist UK insurer Pension Insurance Corporation Group Limited (PICG) in a transaction valued at £5.7bn.

Under the terms of the definitive agreement, the acquisition – which is expected to close in early 2026, subject to customary closing conditions, including regulatory approvals from the Prudential Regulation Authority – will be funded primarily by equity as well as long term bank debt.

Backed by US alternative asset manager Apollo Global Management and Athene Holding Ltd, as well as a number of long term institutional investors, Athora has €76bn of assets under management and administration and serves approximately 2.8 million policyholders.  

As a result of the transaction, PICG will become Athora’s UK subsidiary, maintaining its long-tenured team, dedication to customer service, robust capitalisation and disciplined investment philosophy.

“We are pleased for PICG to become Athora’s first UK insurance business, maintaining its great team, brand and utmost commitment to serving its customers,” said Mike Wells, group chief executive of Athora. “The acquisition by Athora will enhance access to long-term growth capital and asset origination capabilities, enabling PIC to serve more of the UK savings and retirement market, where it has already established itself as a top three provider in pension risk transfer.”

Upon completion of the transaction, PICG will become Athora’s UK insurance business, operating under the Pension Insurance Corporation (PIC) and penguin brands.

“PIC has had an amazing growth story over the past two decades and is now one of Britain’s preeminent pension businesses,” said Tracy Blackwell, chief executive of PIC. “Athora’s investment is validation of what we have always believed: that PIC’s reputation, strategy, fortress balance sheet, purpose and, most importantly, our people, combine to make this a unique business in a huge and growing market.”

In addition, PIC is poised to benefit from broader resources, long term growth capital and enhanced asset origination capabilities, including in private investment grade credit resulting from Athora’s strategic relationship with Apollo. Together, Athora and PIC believe the combination will accelerate scaled, high-grade financing in the UK market, increasing productive investment in the economy and supporting retirement outcomes for pensioners.

Ms Blackwell concluded: “With Athora backing us through our next phase of growth as their UK insurance business, we will be able to provide more options to the trustees of defined benefit pension schemes and invest more in the UK economy and infrastructure.”

News: Apollo-backed Athora to buy Pension Insurance Corporation for $7.8 bln