TIAA in New York has agreed to buy EverBank in Jacksonville, Fla.

TIAA said in a press release Monday that it will pay $2.5 billion, or $19.50 a share, in cash for the $27.4 billion-asset EverBank. The deal is expected to close in the first half of next year.

The acquisition is expected to significantly expand the range of banking and lending products offered by TIAA, which already provides retirement, investment and advisory services.

"EverBank's complementary capabilities and two decades of profitability make this an excellent investment and a great strategic fit for TIAA," Roger Ferguson Jr., TIAA's president and chief executive, said in the release. "Together, we look forward to bringing an enhanced level of service and an expanded range of financial solutions to our millions of loyal customers and the institutions we serve."

J.P. Morgan Securities, Lazard and Davis Polk & Wardwell advised TIAA. UBS Investment Bank and Sullivan & Cromwell advised EverBank.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.