Synovus Financial (SNV) Divests GLOBALT to Its Leadership Team
Synovus Financial Corp. SNV and GLOBALT Investments LLC have announced the completion of a deal, wherein the leadership team of GLOBALT purchased back the firm from Synovus. As a result, GLOBALT will now operate as an independent firm. The terms of the deal were not disclosed.
Henceforth, GLOBALT will be an independent provider of managed exchange-traded fund (ETF) and equity portfolios that assist advisors and institutions in navigating the evolving global environment. The transaction includes the retention of the entire GLOBALT executive leadership team.
Chief investment officer and founder of GLOBALT, Gary Fullam, will remain at the helm of the investment management team.
GLOBALT was established in 1991 and operated independently until 2002 when it was acquired by Synovus. The firm had approximately $3 billion of assets under management as of Sep 30, 2023, and is one of the oldest ETF-managed portfolio companies, offering solutions across a variety of leading platforms, such as Envestnet and others.
William H. Roach Jr., president of GLOBALT, said, "As we embark on the next stage of our growth story, my GLOBALT colleagues and I could not be more excited about the opportunities to expand our relationships and deliver our differentiated ETF solutions to a broader range of financial advisors, institutions and individuals."
Kevin Blair CEO, president and chairman of SNV, stated, "We believe GLOBALT has a strong future as an independent investment advisor, enabled to explore a wide range of additional partners and potential client relationships. Our working relationship with the GLOBALT team provided valuable expertise to our clients."
Over the past three months, shares of SNV have declined 16.5% compared with the industry’s fall of 2.7%.
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Currently, Synovus Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Divestitures by Other Banks
MidWestOne Financial Group MOFG announced a definitive agreement to sell its Florida operations to DFCU Financial. The completion of the cash deal, approved by both companies’ boards of directors, is expected in the second quarter of 2024.
As a result of the sale, MOFG will transfer two branches, $158.8 million in deposits and $162.2 million in gross loans to DFCU Financial. MidWestOne will receive a deposit premium of 7.5%, amounting to nearly $11.9 million pre-tax. The premium is calculated on the basis of its deposits as of Jun 30, 2023.
Citigroup Inc. C announced the sale of its Bridge built by Citi platform to Foro Holdings, Inc., a Charlotte-based commercial lending services provider. C has joined Foro’s investors, including TTV Capital, US Bank and Correlation Ventures to provide Foro with additional capital investment to aid the continued growth of the business.
Bridge is a lending platform that connects small and medium-sized businesses with small regional banks. The platform facilitates small businesses to submit loan proposals to 75 banks and has handled more than $1 billion in loan requests.
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