Company officials say that the merger will enable Jones Lang LaSalle, which has an integrated global platform with offices in 100 cities in 36 countries, to add immediate scale in the New England area, to strengthen its depth of resources in the Washington, DC market and to bring together significant expertise across all real estate service lines.
Under the terms of the agreement, Jones Lang LaSalle will acquire Spaulding & Slye with $150 million cash paid at closing. The agreement calls for additional consideration and an earn-out that are subject to certain contract provisions and performance. The transaction will be financed with Jones Lang LaSalle's existing revolving credit facility, with closing subject to Hart-Scott-Rodino approval as well as other customary closing conditions.
"This transaction is consistent with our articulated growth strategy which includes strengthening our local and regional service offerings around the globe," said Colin Dyer, Jones Lang LaSalle Chief Executive Officer.
Spaulding & Slye senior management will hold leadership positions within Jones Lang LaSalle, and management of both firms anticipate that substantially all the 500 Spaulding & Slye employees will integrate into similar capacities and roles within the combined organization.
The two companies believe the merger will bring together talent and experience in leasing, management, project management, investment sales, structured finance, consulting and development. The combined firm will have leadership positions and deeper resources in several industry sectors -- federal services/public institutions, higher education, law firm services, and life sciences.
With the addition of the Spaulding & Slye employees, Jones Lang LaSalle will have approximately 20,000 employees around the world, including over 500 in the Washington, DC area and over 300 in the Boston area. The combined firm, which will have 915 million square feet under management and nearly $30 billion of assets under management, will be headquartered in Chicago.
"This agreement positions us to expand our capabilities significantly, welcome hundreds of highly talented people into our ranks and benefit from Spaulding & Slye's well-earned reputation for innovation and excellent service delivery," said Peter Roberts, Chief Executive Officer of the Americas for Jones Lang LaSalle.
