TIAA to Acquire EverBank

TIAA announced on Monday an agreement to acquire EverBank, a nationwide consumer and commercial bank with $27.4 billion in total assets.

“This acquisition significantly expands TIAA’s banking and lending products and complements the company’s full suite of retirement, investment and advisory services available to help customers achieve financial well-being,” according to the announcement.

Under the terms of the agreement, EverBank stockholders will receive $19.50 per share in cash, or an approximate total of $2.5 billion.

EverBank, which was founded more than 20 years ago, has established banking operations that will allow TIAA to provide a more comprehensive range of services. Currently, TIAA offers a variety of savings and lending products to its customers.

The combination of TIAA’s existing banking operations and EverBank will strengthen TIAA’s banking capabilities and form a full-service banking company for both companies’ customers.

“Saving is essential to reaching important life goals. Whether building emergency savings or buying their first home, customers want to turn to a company they trust,” Kathie Andrade, chief executive officer of TIAA’s Retail Financial Services business, said in a statement. “Helping our clients succeed throughout their lives is at the heart of TIAA’s mission, and the reason our employees come to work each day.”

The acquisition will allow TIAA to accelerate its plans in banking.

“TIAA intends to make EverBank an integral part of its Retail Financial Services business and envisions offering banking and lending core services to its over 5 million members and 16,000 institutional clients,” according to EverBank’s website. “TIAA believes EverBank will significantly enhance the company’s ability to fully serve its clients by providing high-value, straightforward lending, savings and cash management solutions throughout the financial life cycle.”

Rob Clements, EverBank chairman and CEO, said the two companies are a “great match.”