Daily Record Financial News &
Monday, August 8, 2016
Vol. 103, No. 191 • Two Sections
35¢ www.jaxdailyrecord.com
TIAA to pay $2.5B for EverBank Financial Jacksonville will be headquarters for combined bank
By Mark Basch Contributing Writer Jacksonville-based EverBank Financial Corp. on Monday morning announced an agreement to be acquired by financial services firm TIAA for $2.5 billion. EverBank will be merged with TIAA’s banking operations, with Jacksonville serving as the headquarters of the combined bank. “TIAA intends to maintain a strong presence and an active
role in the Jacksonville community,” the companies said in a news release. EverBank spokesman Michael Cosgrove said the companies will be working on details regarding branding over the next several months. It is not known if Jacksonville’s football stadium will continue to be known as “EverBank Field.” As expected, TIAA is buying EverBank for $19.50 a share, a total of $2.5 billion, the companies said.
EverBank announced two weeks ago it was in talks with an unidentified financial services firm to be acquired for $19.50 a share and last week, several financial news outlets identified TIAA as the potential buyer. New York-based TIAA was formed by the Carnegie Foundation in 1918 as the Teachers Insurance and Annuity Association of America to provide a retirement system for teachers. It continues to operate as a notfor-profit company focusing on
financial services for people in the academic, research, medical, cultural and government fields. TIAA said the addition of EverBank will give its bank a more comprehensive range of services. “Our two companies are a great match. We look forward to introducing our unique consumer and commercial banking products to the millions of individuals and the institutions that TIAA serves today, while enhancing the investment and retirement EverBank continued on Page A-2
Clements
New federal overtime rules take effect Dec. 1 Will affect salaries below $47,476
Photo by Bobby King
By Max Marbut Staff Writer
Slick plays off the field, too While it was football on the field Friday night, children like 3-year-old Norvie Whetsul enjoyed an array of slides, games and even getting slimed at EverBank Field. The Jacksonville Jaguars and Nickelodeon teamed up for the Road to Worldwide Day of Play campaign that ran in conjunction with the team scrimmage. See more from the event, Page A-8.
Yodle deal transforms Web.com
Web.com Group Inc. Thursday reported higher-than-expected earnings for the second quarter, its first full quarter since acquiring digital marketing company Yodle in March. The Jacksonville-based company’s adjusted second-quarter earnings of 62 cents a share were higher than its own forecast of 57 cents to 61 cents, and also higher than second-quarter 2015 earnings of 60 cents. In a conference call with analysts, CEO David Brown said the results confirm the “strong strategic fit” of Yodle and explained how the deal has transformed Web.com, which has provided website development services for small and medium-sized businesses. “Value-added digital marketing solutions continue to contribute to our top-
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line growth and now makes up a majority of our business. It is also the fastest-growing component of our revenue,” he said. Web.com in June announced a realignment of its top management, which included putting three former Yodle executives in high-level positions. Brown said in Thursday’s conference call the realignment was “focused on providing clear leadership in the areas of the business where we expect to drive
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faster growth over time as well as the parts of the business which we previously discussed are more mature and are under competitive pressure.” He said the company is ahead of schedule with implementing cost cuts from the deal. He also said Web.com is expecting lower revenue growth than it originally thought but profit margins should be higher, so the company’s earnings forecasts remain on track. “We believe that this short-term moderation in our growth outlook, while we take steps to improve efficiency and customer retention, is the right long-term decision and will enhance our growth profile and profitability going forward,” he said. “Everything we have seen in the months Basch continued on Page A-2
On Dec. 1, new federal regulations will go into effect that could occasionally increase the paychecks of 4.2 million workers, including more than 330,000 in Florida. And the changes could have a significant impact on the legal profession. Amendments to the Fair Labor Standards Act will make people earning less than $47,476 a year ($913 per week) eligible for overtime pay, doubling the $455 per week, $23,660 annual salary threshold that’s been in effect since 2004. “A lot more people will be eligible for overtime,” said Tad Delegal, an attorney certified by The Florida Bar in labor and employment law as well as state and federal administrative practice. The new regulations won’t directly impact attorneys’ compensation because they fall under the “white collar” exemption in the law. Delegal The exemption covers administrative, computer-professional and executive employees. That includes legal assistants and paralegals. “It’s going to change the game for a lot of people,” Delegal said. “Paralegals are generally entitled to overtime, but a lot of firms don’t pay it.” In addition to more employees qualifying for overtime, the new rule could result in some people receiving an increase in salary. According to a report published by The Florida Bar, if a law firm deems its office manager or network administrator
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