TIAA Inks $2.5 Billion Deal To Buy EverBank

TIAA, the financial services company, inked a deal on Monday (Aug. 8) to acquire EverBank for $2.5 billion.

The deal, which was approved by both boards, will expand TIAA’s banking and lending products, as well as complement its retirement, investment and advisory services. EverBank has $27.4 billion in total assets.

Under the terms of the deal, EverBank shareholders will get $19.50 a share in cash, valuing the deal at around $2.5 billion. EverBank’s board unanimously approved the transaction after a comprehensive review. The deal is subject to closing conditions, including regulatory approvals from both the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. EverBank’s shareholders also have to give their blessing to the deal. It’s expected to close in the first half of next year.

The companies noted that certain EverBank stockholders, including directors and executive officers with 22 percent voting power, entered into voting and support agreements with TIAA to vote in favor of the deal. The holders of the EverBank’s Series A 6.75 percent Non-Cumulative Perpetual Preferred Stock will have the right to receive the liquidation preference of $25,000 plus accrued and unpaid dividends on a share in cash at closing.

“I am very excited to welcome EverBank to the TIAA team,” said Roger W. Ferguson Jr., president and chief executive officer at TIAA, said in a press release announcing the deal. “EverBank’s complementary capabilities and two decades of profitability make this an excellent investment and a great strategic fit for TIAA. Together, we look forward to bringing an enhanced level of service and an expanded range of financial solutions to our millions of loyal customers and the institutions we serve.”

TIAA said EverBank’s established banking operations will enable TIAA to provide customers with a more comprehensive range of services. The purchase also gives TIAA an expanded employee base and significant business operations in Jacksonville, Florida, and other key markets across the country, TIAA said.