EverBank to Join With WaFd in $3.9 Billion Merger
Synopsis
EverBank agrees to combine with WaFd in a $3.9 billion reverse merger, forming a regional bank with roughly $75 billion in assets.
Key Highlights
- A $3.9 billion reverse merger for WaFd with EverBank Financial
- The new entity will have approximately $75 billion in assets.
- WaFd will keep its public listing, but under a new name, EverBank Financial Corp, as a separate company and trading under ticker EVBK.
- Pro forma owners of the combined company will own approximately 59.2% and WaFd shareholders will own 40.8%.
EverBank and WaFd announce merger deal 4The latest in banking M&A deals around the world5Merger creates top-30 subprime auto lender PublishedJanuary 18 2022, 15:30 ET
EverBank Financial, based in Florida, will buy less-familiar WaFd, a bank on the Pacific Coast, for $3.9 billion in an all-stock deal announced Monday by the companies. Expected to form a regional bank with roughly $75 billion in assets.
The deal will see EverBank become a wholly owned subsidiary of WaFd, with its acquiring firm remaining publicly traded. WaFd will operate under the name of EverBank Financial Corp and trade publicly on the Nasdaq under the ticker symbol EVBK following completion of a merger.
The Pro forma Ownership of the Combined Company
Upon closing of the transaction, EverBank stockholders will collectively own approximately 59.2% of the combined company and existing WaFd shareholders will own a total of about 40.8%.
Expected Financial Impact
The merger is expected to close in early 2027 and the companies said it’s forecast to boost WaFd’s 2027 earnings per share by about 29% and about recover tangible book value dilution in under two years.
Source: Reuters
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