Shares of EverBank Financial Corp (NYSE: EVER) increased 4.27% to $18.31 on Tuesday after the company announced it is in advanced negotiations with a financial services firm to be acquired for roughly $2.5 billion.
A well respected financial-services company has discussed buying EverBank for $19.50 per share along with payments to holders of preferred stock, according to EverBank’s Tuesday announcement. Stock price already increased 13% to $17.56 on Monday after Bloomberg reported the acquisitions talks.
According to the Bloomberg report, EverBank’s market value was approximately $1.9 billion. The company’s initial public offering in 2012 priced at $10 per share, and the stock topped at $21.18 per share last October, before stumbling in the wake of quarterly earnings disappointment.
“As a result of an ongoing review of its strategic alternatives, it is in advanced negotiations with a well-respected financial-services company,” EverBank said in the statement. “There can be no certainty that these negotiations will result in a definitive agreement or that the terms will not vary from those currently under discussion.”
In addition, EverBank reported the second quarter financial results on Tuesday. Profit slumped 48% to $21.6 million, or earnings per share of $0.15, compared with a profit of $41.6 million, or earnings per share of $0.31in the same quarter last year. Revenue fell 22% to $196.6 million as a gain in net interest income was offset by a decline in noninterest income because of mortgage servicing amortization and losses in loan servicing.
EverBank provides individual and business loans through the United States, and operates a wealth-management division as well. It’s primarily an online bank, with only 12 branches in June 2015, according to the Federal Deposit Insurance Corp. EverBank made two acquisitions totaling approximately $3 billion in 2012, buying a commercial-property lending firm from General Electric Company (NYSE: GE) and a warehouse-finance business from MetLife Inc. (NYSE: MET)