Real estate consultancy firm CBRE has entered into an agreement to acquire Johnson Controls' work space solution business GWS for USD 1.475 billion in an all cash deal.
Together, CBRE and GWS will manage nearly 5 billion square feet of real estate and corporate facilities globally, including 1.4 billion square feet in Asia Pacific, CBRE said in a statement.
CBRE has entered into a definitive agreement to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc. The "purchase price of the deal is USD 1.475 billion, payable in cash", the statement said.
"Global WorkPlace Solutions (GWS) will operate as part of CBRE's Global Corporate Services (GCS) business, which has increased revenue at a double-digit compound annual growth rate over the last decade," it said.
GWS serves a blue-chip roster of global corporations, particularly in the industrial or manufacturing, life-sciences, and technology sectors.
It has approximately 16,000 employees worldwide and generated approximately USD 3.4 billion of revenue for the 12 months ended December 31, 2014.
"GWS will further improve our ability to serve clients in more than 50 countries with a market-leading capability in all services, industry sectors and property types. The GWS team is a great fit for our business," CBRE GCS CEO Bill Concannon said.
CBRE and Johnson Controls also announced a 10-year strategic relationship. As per the agreement CBRE will provide Johnson Controls an integrated corporate real estate services including facilities management, project management and transaction services on more than 50 million square feet.
Whereas Johnson Controls will offer building automation systems and related services to CBRE for its managed properties.
John Murphy, the president of GWS, will join CBRE as global chief operating officer of its GCS business.