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JLL/Staubach a Done Deal

JLLStaubach

The two firms announced the deal last night. More coverage to follow today and tomorrow. Importantly, Staubach Retail and Cypress Equities, Staubach's retail development arm, are NOT part of the merger. Those are independent companies.

Here's a small excerpt from the press release on Jones Lang LaSalle's Web site with some of the important deal metrics:

Under the terms of the agreement, Jones Lang LaSalle will pay $613 million, with $123 million in cash and $100 million in stock paid at the transaction close and the balance paid out in cash over five years, for all of the outstanding capital stock of Staubach Holdings, Inc. The agreement also calls for potential earn out payments of up to $114 million that are subject to the achievement of certain performance metrics measured over a period of up to approximately four and one-half years after the closing. The transaction is expected to close in the third quarter subject to Hart-Scott-Rodino approval as well as other customary closing conditions.

There's also a little video featuring Roger Staubach and Colin Dyer that you can view here.

Update: NREI has an excellent analysis of the deal.

The $613 million deal caps weeks of intense speculation, and now positions the combination as the second-largest brokerage firm in the world, with $184.7 billion in combined investment sales and leasing volume, according to the latest ranking of top brokerage firms by National Real Estate Investor. The combination places just behind New York-based CB Richard Ellis, with $264.2 billion in sales and leasing volume.

With the Staubach purchase, JLL substantially beefs up its tenant representation business overnight. Significantly, the combined firm will operate under the JLL brand, which means the end of The Staubach Co. name, founded by chairman Roger Staubach 31 years ago.

“The proposed deal sounds pretty good for JLL,” says Brandon Dobell, an analyst with William Blair & Co. “Staubach's tenant rep business aligns well with JLL's strengths and brings a solid brand into JLL's company.”

The merger is expected to close in the third quarter, but does not include Staubach Retail Services or Cypress, Staubach's investment development business, both of which will continue to operate under license agreements.

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