Synovus Agrees to Buy Cabela's Banking Assets

By Liz Hoffman and AnnaMaria Andriotis

Synovus Financial Corp. said Monday it had agreed to buy the banking assets of Cabela's Inc., allowing the outdoor retailer's $4.2 billion sale to rival Bass Pro Shops to proceed after hitting regulatory snags.

Capital One Financial Corp. will buy Cabela's credit-card portfolio, while Synovus, a small lender in the southeastern U.S., will acquire the bank's $1.2 billion in deposits. Cabela's shares rose 6% in after-hours trading to $57.

Capital One had planned to buy both financial pieces, but ran into trouble with its regulator. That raised concerns it wouldn't be able to complete the deal quickly enough, and left Bass Pro and Cabela's seeking an alternative buyer for the bank.

The Wall Street Journal first reported that Synovus was in deal talks with Cabela's and Bass Pro last month.

Synovus will receive $75 million for stepping in to help save the deal. That is borne largely by Cabela's shareholders, who will receive $4 less a share than originally agreed. The new price of $61.50 a share represents a 6% price cut.

Write to Liz Hoffman at liz.hoffman@wsj.com and AnnaMaria Andriotis at annamaria.andriotis@wsj.com

(END) Dow Jones Newswires

April 17, 2017 18:05 ET (22:05 GMT)

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