TIAA Confirms Deal to Buy EverBank for $2.5 Billion
August 08 2016 - 8:40AM
Dow Jones News
TIAA has reached a deal to buy EverBank Financial Corp. for $2.5
billion in cash, an agreement that comes about two weeks after the
Florida-based lender said it was in talks to be acquired.
In an unusual move, EverBank had said late last month that it
was in talks for buyout at $19.50 a share—matching the terms
outlined Monday—but it didn't identity the bidder at that time. The
Wall Street Journal and other outlets have since reported that TIAA
was the interested party.
Its offer marks a 26% premium over where shares traded ahead of
media reports about the talks. The stock edged up 2.7% to $19.15
premarket.
Buying EverBank would give TIAA $27.4 billion in assets and
$18.8 billion in deposits. EverBank focuses on online and mobile
banking but also has some offices. While EverBank is based in
Florida, it holds loans and deposits from across the U.S. and
focuses on making big mortgages called jumbo loans that banks
increasingly find attractive.
EverBank was established in 1998 and has grown through a series
of acquisitions, including Tygris Commercial Finance Group in 2009,
Bank of Florida in 2010 in an FDIC-assisted transaction, and
MetLife Inc.'s warehouse finance business. It went public in
2012.
Meanwhile, TIAA, which already has a small online bank, has
managed retirement assets for employees of universities and
nonprofits for decades.
Midsize lenders are among the most active deal makers in the
financial industry these days. Smaller banks face pressure to grow
or try to sell themselves, as low interest rates sap profits and
regulatory costs mount. By becoming larger, they can spread costs
over a broader base of customers and assets.
Certain stockholders and executives with the power to vote about
22% of EverBank's shares outstanding have entered into agreements
with TIAA to vote in favor of the deal, which is expected to close
in the first half of 2017.
Write to Rachel Louise Ensign at rachel.ensign@wsj.com and Telis
Demos at telis.demos@wsj.com
(END) Dow Jones Newswires
August 08, 2016 08:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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