TIAA Is Buying EverBank Financial for About $2.5 Billion
Financial services firm TIAA said it would buy U.S. online lender EverBank Financial for about $2.5 billion to expand its banking services.
EverBank (EVER) shares rose 2% to $19.05 in premarket trading on Monday, below the cash offer price $19.50 per share.
The offer is at a premium of more than 8% from the stock’s close on Aug. 2, a day before Reuters reported that TIAA was in advanced talks to acquire EverBank to expand its internet banking services.
TIAA was founded in 1918 by American tycoon and philanthropist Andrew Carnegie’s Carnegie Foundation to cater to people working at not-for-profit organizations in the academic, research, medical and cultural fields.
The combined company will be based in Jacksonville, Fla., where EverBank is headquartered, TIAA said on Monday.
Lazard (LOR) and J.P. Morgan Securities (JPM) are TIAA’s financial advisers, while UBS Investment Bank advised EverBank.