EverBank Financial and WaFd to Combine in Reverse Merger
WAFD sits 38% above its 52-week low of $26.31.
Summary
WaFd and EverBank Financial announced a reverse merger, a transformative deal for the $2.7B market cap bank. The transaction is valued at $3.9 billion and will create a combined bank with $75 billion in assets. The reverse merger structure implies EverBank's shareholders will control the combined company, potentially diluting WaFd's existing holders. Specific terms and ownership structure are not yet disclosed. This follows WaFd's strong Q3 earnings and heavy buyback activity, suggesting management is pursuing scale through M&A. Investors should watch for the definitive agreement and pro forma financials to assess the deal's impact on earnings and capital.
At the time of this announcement, WAFD was trading at $36.30 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $26.31 to $39.49. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.