EverBank accepted an all-cash take-over offer from not-for-profit pensions group TIAA.
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“We also share in TIAA’s passion and commitment to bringing you new and innovative online and digital experiences created to both improve and simplify your financial life”, EverBank’s statement said. However, the companies have not yet decided if they will keep the EverBank brand name for the bank. Under terms of the deal, TIAA will pay $19.50 per share in cash for each EverBank share outstanding, representing a 4.6% premium to Friday’s closing price of $18.64. An EverBank spokesman confirmed the deal is done.
“I am very excited to welcome EverBank to the TIAA team”, said Roger W. Ferguson, Jr., president and CEO at TIAA in the Business Wire report.
The deal is likely to further expand TIAA’s banking and lending capabilities and enhance its support for customers to achieve financial assistance. “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 says it intends to maintain a strong presence and an active role in the Jacksonville community, with the city serving as the combined bank’s headquarters. EverBank runs the majority of its business online or through mobile banking, and similarly TIAA also has small online business operations. The transaction, subject to regulatory approval by the Federal Reserve and the Office of the Comptroller of the Currency, is expected to close in the first half of 2017, according to the statement.
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On August 8, 2016, EverBank announced it had signed a definitive merger agreement with TIAA. Following the acquisition agreement, EverBank’s stock moved up 2.8% in pre-market trading.
