JLL buys US tenant rep for EUR 464m

Global property adviser Jones Lang LaSalle (JLL) is set to expand its business significantly with the acquisition of Dallas-based peer The Staubach Company in a deal worth $727mln (EUR 464mln). The Staubach Company was founded by former Dallas Cowboys football star Roger Staubach in 1977 and now employs 1,600 staff in more than 70 offices throughout North America. The company has 3,000-plus clients and is best known for its tenant representation services. It completed transactions totalling $28bn and 18.6 million m² during the fiscal year to end-June 2007.

Chicago-based JLL operates 170 offices in more than 60 countries offering the full range of real estate advisory services. JLL reported revenues of $2.7bn in 2007. The combination with The Staubach Company, whcih will operate under the JLL name, will have 33,700 employees, of whom 11,500 are based in the US. Explaining the reasons for the merger, Colin Dyer, CEO of JLL said: 'Merging our business reinforces two of our global growth priorities, building our position in key US local markets and strengthening our corporate services business.'

Staubach said that the tie-up with JLL will give his clients global coverage. 'In today's global economy when so many of our clients want an international platform, this merger gives us the opportunity to provide those services seamlessly.'

JLL has agreed to pay $613mln for The Staubach Company. There will be an initial cash payment of $123mln and $100mln in company stock. The balance will be paid in cash over a five-year period. Staubach may receive an additional $114mln, depending on the performance over the next four years and six months.

Global property adviser DTZ announced its was ending its alliance Stauback because of the merger with JLL.