Synovus Financial (SNV) to Acquire Entaire Global Companies in $30M+ Deal

August 18, 2016 4:12 PM EDT

Get the Pulse of the Market with's Pulse Picks. Get your Free Trial here.

Synovus Financial Corp. (NYSE: SNV) announced a definitive agreement to acquire Entaire Global Companies, Inc. (“Entaire”), an Atlanta-based specialty financial services company.

Entaire is a private life insurance premium finance lender providing fully collateralized, non-mortality-based loans to commercial borrowers through its principal subsidiary, Global One. Entaire lends primarily to small businesses, with all loans collateralized by cash value life insurance policies issued by investment grade insurance companies.

“The addition of Entaire aligns well with our strategy for building balance sheet strength and further diversifying our loan portfolio,” said Kessel D. Stelling, chairman and CEO of Synovus. “We are excited about the solid growth potential Entaire provides, and about the combining of our similar cultures that are deeply rooted in service to customers, team members, and communities. We look forward to welcoming the Entaire team into the Synovus family.”

“Synovus’ financial strength and its legacy of personal service make it an ideal partner for Entaire and Global One,” said Jonathan D. Rosen, chairman and CEO of Entaire. “We are pleased to be joining the company and look forward to making a significant contribution to its future. We are also excited that this partnership will allow us not only to continue offering the same great products and services, but also to benefit from Synovus’ strong culture and talent.”

The anticipated benefits of the transaction to Synovus include:

  • A locally-based, nationwide specialty lending team with significant industry experience;
  • A business that provides an attractive risk return profile and adds diversity to the company’s loan portfolio;
  • An opportunity to deploy capital into a growing market segment without impacting the company’s existing capital plan, which was announced in October 2015; and
  • Projected immediate accretion to EPS, ROE, and ROA(1), with minimal dilution to tangible book value per share.

Under the terms of the agreement, Synovus will acquire Entaire for an up-front payment of $30 million in common stock and cash, with additional payments to Entaire’s stockholders over the next three to five years based on Entaire’s earnings. Entaire’s key management has signed long-term employment agreements with Synovus. The transaction is expected to close in the beginning of the fourth quarter of 2016, subject to customary closing conditions, including approval of Entaire stockholders. A fact sheet on the transaction is attached to this press release.

Barclays served as financial advisor to Synovus in this transaction.

(1) Accretion excludes merger-related costs expected to occur in 4Q2016.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Management Comments, Mergers and Acquisitions

Related Entities

Barclays, Twitter, Earnings, Definitive Agreement

Add Your Comment