Tuesday, June 17, 2008 - 11:31 AM EDT
http://baltimore.bizjournals.com/baltim ... ily15.html
Jones Lang LaSalle to buy Staubach for up to $727M
The long-rumored merger between Jones Lang LaSalle and the Staubach Co. is official.
Jones Lang LaSalle Inc. (NYSE: JLL) announced the merger, valued at up to $727 million, after the stock market closed Monday. The combined commercial real estate services company will operate under the Jones Lang LaSalle brand.
Both companies have downtown Baltimore operations. Dallas-based Staubach reported five local brokers in March, according to Baltimore Business Journal research. Jones Lang LaSalle has 80 employees in its downtown Baltimore office -- both in investment and brokerage capacities.
It was unclear how the merger will affect the local offices.
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 transaction is expected to close in the third quarter subject to regulatory approval.
The agreement also calls for potential performance-based payments of up to $114 million over a period of up to approximately 4.5 years after the closing.
Jones Lang LaSalle's 2007 global revenue was $2.7 billion.
The deal marks the 28th acquisition for Jones Lang LaSalle since 2006. In late 2005, it bought Spaulding & Slye, a Boston-based company with a large Washington, D.C., office, for $150 million in cash. The companies had a relatively smooth transition, but Spaulding & Slye was much smaller than Staubach, which has 1,600 employees in 70 offices and completed $28 billion in transactions in the fiscal year that ended in June 2007, according to the release.
"The Staubach Co. is recognized for exceptional tenant representation expertise and is a leading presence in markets throughout the United States. We are delighted that they have decided to join our company," said Colin Dyer, chief executive officer of Jones Lang LaSalle.
Roger Staubach, the former Dallas Cowboys star who founded Staubach 31 years ago, will join the Jones Lang LaSalle board and will serve in the new role of executive chairman of the Americas. Greg O'Brien, Staubach's CEO based out of the D.C. office, will be the CEO of brokerage for the Americas, leading the newly created business that will set strategic direction in tenant representation and agency leasing.