We extend the ab initio coupled-cluster effective interaction (CCEI) method to deformed open-shell nuclei with protons and neutrons in the valence space, and compute binding energies and excited states of isotopes of neon and magnesium. We employ a nucleon-nucleon and three-nucleon interaction from chiral effective field theory evolved to a lower cutoff via a similarity renormalization group transformation. We find good agreement with experiment for binding energies and spectra, while charge radii of neon isotopes are underestimated. For the deformed nuclei $^{20}$Ne and $^{24}$Mg we reproduce rotational bands and electric quadrupole transitions within uncertainties estimated from an effective field theory for deformed nuclei, thereby demonstrating that collective phenomena in $sd$-shell nuclei emerge from complex ab initio calculations.
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