Toronto-Dominion Bank said on Monday it is accelerating its long-term growth strategy in the US by acquiring Tennessee-based First Horizon Bank for $13.4 billion.
The Canadian banking and financial services company said it would pay $25 per share in the cash transaction.
TD said the deal is immediately favorable for adjusted earnings per share and is expected to result in a full synergy on invested capital of 10% in 2023.
TD said it expects to incur $1.3 billion in costs over the first two years after business related mergers and amalgamations, and expects to generate approximately $610 million in pretax cost-synergies.
"The [acquisition] provides TD with significant opportunities for future growth in the Southeast with an immediate presence and scale in highly attractive adjacent markets in the US," said Bharat Masrani, Group President and CEO.