EverBank Financial Corp. (EVER) said it and General Electric Capital Corp. executed a definitive agreement under which EverBank, a subsidiary of EverBank Financial, will acquire Business Property Lending, a business unit of GE's (GE) GE Capital Real Estate, North America.
Under the terms of the deal, EverBank will acquire the stock of Business Property Lending, Inc., which at the closing of the transaction will hold the origination and servicing platform for Business Property, for a purchase price of $2.51 billion in cash. No debt will be assumed in the acquisition. The transaction includes approximately $2.44 billion of performing commercial loans, the origination and servicing platforms, 108 employees and servicing rights on $3.1 billion of loans securitized by GE Capital.
Robert Clements, Chairman of the Board and Chief Executive Officer of EverBank Financial, said, "...We believe this fully integrated, high quality franchise will accelerate EverBank's strategic growth plans and will further enhance and diversify our robust, nationwide asset generation capabilities. In addition, the financial benefits of the transaction are attractive, resulting in near term accretion to EPS and ROE. "
Key metrics associated with the transaction include immediate low double digit earnings per share accretion, and around 100 bps ROE accretion.
The deal is expected to close in the fourth quarter of 2012.
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