Georgia-based Synovus Financial has agreed to acquire Atlanta-based specialty financial services firm Entaire Global Companies.
Synovus will make an upfront payment of $30m in common stock and cash for the acquisition.
It will also bear additional payments to Entaire’s stockholders in the next three to five years period based on the Entaire’s earnings.
The deal is likely to be closed at the start of Q4 2016 and is subject to regular closing conditions that include an approval of Entaire stockholders.
Synovus chairman and CEO Kessel Stelling said: “The addition of Entaire aligns well with our strategy for building balance sheet strength and further diversifying our loan portfolio.”
Post acquisition, Synovus will be boosted by Entaire’s locally-based nationwide experienced specialty lending team.
It would also add a business that has an attractive risk return profile while also finding an opportunity to deploy capital and get immediate accretion to EPS, ROE, and ROA1.
Entaire is headquartered in Dunwoody, Georgia. The company deals with multiple financial services while specializing in asset-based lending. It also has been providing life insurance-based premium financing nationally.
Synovus is headquartered in Columbus. It is into the fields of commercial and retail banking.
The company also provides investment and mortgage services in Georgia, Alabama, Florida, South Carolina and Tennessee.
It currently has 28 locally-branded divisions, 253 branches and 335 ATMs in these five US states.
Entaire Global chairman and CEO Jonathan Rosen said: “Synovus’ financial strength and its legacy of personal service make it an ideal partner for Entaire and Global One.”
Another significant part is the acquisition is that of Entaire’s key management signing long-term employment agreements with the new parent company.
Image: Synovus Financial is all set to acquire Entaire Global. Photo courtesy of patrisyu/Freedigitialphotos.net.