Pinnacle Financial Partners acquired Avenue Financial Holdings, Inc. for approximately $201.4 million, a transaction completed in July 2016, structured as combination — 0.36 Pinnacle shares plus $2.00 cash per Avenue share.
Avenue Financial Holdings, Inc. operates in Community banking — Nashville, TN, is based in Nashville, Tennessee, had revenue of about ~$1.16 billion in total assets (Dec. 31, 2015). Avenue Financial Holdings, parent of Avenue Bank, was a Nashville bank with about $1.16 billion in assets and a national niche serving the music and entertainment industry. The roughly $201 million deal (about 3.7 million Pinnacle shares plus $23.2 million cash, with Pinnacle also assuming $20 million of subordinated debt) combined Nashville's two leading locally owned community banks and lifted Pinnacle toward top-three deposit share in the market.
An in-market combination to build toward Pinnacle's goal of the No. 1 deposit position in the Nashville MSA, adding Avenue's specialized industry segments and high-performing team.
Deepened share in one of the nation's best banking markets, complementary cultures (both 'Best Banks to Work For'), and specialized verticals including music/entertainment. Expected elimination of ~40% of Avenue's expense base after technology conversion. Avenue Bank merged into Pinnacle Bank; Ron Samuels named vice chairman of Pinnacle's board
In our march to dominate the four urban markets in Tennessee, we have said for some time that we would be seeking in-market merger opportunities. This merger is consistent with Pinnacle's strategy to grow rapidly and become the dominant bank in the commercial banking and affluent consumer segments in Nashville.M. Terry Turner, President and CEO, Pinnacle Financial Partners
Both we and Pinnacle have been committed to the idea that Nashville deserves a large and impactful local bank. Bringing Nashville's two best locally owned banks together is a fabulous thing for this city.Ron Samuels, Chairman and CEO, Avenue Financial Holdings
Advisory firms were not disclosed for this transaction.