Jones Lang LaSalle to buy capital markets services provider HFF for $2 bln
(Adds synergies, board, shares, background)
March 19 (Reuters) - Real estate services provider Jones
Lang LaSalle Inc said on Tuesday it will buy capital
markets services provider HFF Inc in a cash-and-stock
deal valued at about $2 billion.
HFF shareholders will get $24.63 in cash and 0.1505 JLL
shares for each share held, for a total offering price of $49.16
per share, representing a premium of 5.7 percent to HFF's Monday
Shares of HFF were up 6.9 percent at $49.72 in early trading
on Tuesday, while JLL shares were marginally down.
Acquisition of HFF will allow JLL to rapidly scale its U.S.
capital markets presence and accelerate growth of its debt
advisory business in Europe and Asia Pacific, the companies
HFF provides financial services to commercial real estate
companies, including advisory services, investment banking,
structured financing and the closing and maintenance of loans.
JLL intends to fund the cash portion of the deal with a mix
of cash reserves and its existing credit facility.
The deal, which is expected to close in the third quarter of
2019, will be accretive to adjusted earnings per share for the
combined company in the first full financial year after
The combined company is expected to deliver savings of $60
million over two to three years after the deal closes.
JLL shareholders are expected to own about 87 percent of the
combined company and HFF shareholders the remaining 13 percent.
All seven executive committee members of HFF, representing 3
percent ownership of the company, have agreed to vote their
shares in favor of the transaction, the companies said.
After the deal goes through, JLL expects to add one of HFF's
existing directors to its board.
JP Morgan was JLL's financial adviser and Sidley Austin LLP
legal counsel. Morgan Stanley & Co LLC was financial adviser for
HFF and Dechert LLP legal counsel to HFF.
(Reporting by Bharath Manjesh in Bengaluru; Editing by Shounak
Dasgupta and Shinjini Ganguli)
First Published: 2019-03-19 14:13:25
Updated 2019-03-19 15:15:51
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