Synovus Financial Corporation (SNV - Free Report) has completed acquisition of Atlanta-based specialty financial services company, Entaire Global Companies, Inc., for an up-front payment of $30 million in common stock and cash.
Further, additional payments may be made to Entaire’s shareholders during the next three to five years, based on Entaire’s earnings. Synovus Financial will fully integrate Entaire’s business operations by the end of this year.
The deal was signed in Aug 2016, along with Entaire’s key management personnel, entering into long-term employment agreements with Synovus Financial. Notably, this acquisition is the company’s first since 2013.
During the announcement of the deal, Synovus Financial's management noted that it expects the acquisition to be immediately accretive to the company’s earnings per share, return on equity and return on assets (excluding merger-related costs to be recorded in the fourth-quarter 2016), with minimal dilution to tangible book value per share.
Further, the acquisition will add a nationwide specialty team with significant industry experience, along with a business that has an attractive risk-return profile. Also, it is anticipated to enhance the strength of Synovus Financial’s balance sheet and diversify its loan portfolio.
Additionally, Synovus Financial will gain an opportunity to deploy capital into a growing market segment, without affecting its existing capital plan announced in Oct 2015.
Currently, Synovus Financial carries a Zacks Rank #2 (Buy).
Other stocks in the same space that warrant a look, include Farmers Capital Bank Corp. and Republic Bancorp Inc. (RBCAA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). Atlantic Coast Financial Corp. carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Farmers Capital Bank currently has a year over year earnings growth estimate of 11.3% for 2016.
Republic Bancorp currently has a year over year earnings growth estimate of 20% for 2016.
Atlantic Coast Financial currently has a year over year earnings growth estimate of 94.4% for 2016.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Synovus Financial Corporation (SNV - Free Report) has completed acquisition of Atlanta-based specialty financial services company, Entaire Global Companies, Inc., for an up-front payment of $30 million in common stock and cash.
Further, additional payments may be made to Entaire’s shareholders during the next three to five years, based on Entaire’s earnings. Synovus Financial will fully integrate Entaire’s business operations by the end of this year.
The deal was signed in Aug 2016, along with Entaire’s key management personnel, entering into long-term employment agreements with Synovus Financial. Notably, this acquisition is the company’s first since 2013.
During the announcement of the deal, Synovus Financial's management noted that it expects the acquisition to be immediately accretive to the company’s earnings per share, return on equity and return on assets (excluding merger-related costs to be recorded in the fourth-quarter 2016), with minimal dilution to tangible book value per share.
Further, the acquisition will add a nationwide specialty team with significant industry experience, along with a business that has an attractive risk-return profile. Also, it is anticipated to enhance the strength of Synovus Financial’s balance sheet and diversify its loan portfolio.
Additionally, Synovus Financial will gain an opportunity to deploy capital into a growing market segment, without affecting its existing capital plan announced in Oct 2015.
Currently, Synovus Financial carries a Zacks Rank #2 (Buy).
Other stocks in the same space that warrant a look, include Farmers Capital Bank Corp. and Republic Bancorp Inc. (RBCAA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). Atlantic Coast Financial Corp. carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Farmers Capital Bank currently has a year over year earnings growth estimate of 11.3% for 2016.
Republic Bancorp currently has a year over year earnings growth estimate of 20% for 2016.
Atlantic Coast Financial currently has a year over year earnings growth estimate of 94.4% for 2016.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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