TIAA buys online lender EverBank $2.5bn

Financial service firm TIAA is acquiring online lender EverBank for $2.5bn, as the firm seeks to build out its banking services.

Confirmation of the deal comes two weeks after EverBank announced it was in talks to be acquired for $19.50 a share. That equals roughly $2.5bn with TIAA paying a 26% premium on where EverBank’s shares traded prior to reports of the acquisition.

The deal is one of the largest banking takeovers since the financial crisis, with TIAA saying that its EverBank’s technology and mortgage offerings that attracted it to the deal.

Based in Jacksonville, Florida, EverBank went public in 2012. TIAA says the combined entity will continue to be headquartered there.

Established in 1918, TIAA manages retirement assets for employees at academic and not-for-profit organisations, however its small banking services are open to the public.

With the acquisition of EverBank, which focuses primarily on online and mobile banking, TIAA aims to build out from its current banking offering.

Copyright © 2016 FINTECH GLOBAL

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