UK estate agent Savills has agreed to purchase US investment bank Eastdil Secured for an enterprise value of over $1billion.
The acquisition of the global real estate investment bank comes as Savills looks to accellerate its expansion in North America as well as strengthening its position in Europe and Asia Pacific.
Savills will acquire Eastdil Secured for a total consideration of $921.25million (c.£685million) consisting of:
- $552.75million (c.£411million) payable in cash on completion
- $368.50million (c.£274million) satisfied by the allotment and issue of 27,658,880 new Savills ordinary shares
Commenting on the transaction, Simon Shaw, Group Chief Executive of Savills said: "Eastdil Secured is an organisation we have worked with and admired for many years. It has a complementary geographical footprint and similar culture to our own.
"This acquisition is a significant step forward for both of us, bringing to the global investment community a much-needed choice of leading advisory partner to deliver a comprehensive suite of investment banking, strategic, financial, development, leasing and other 'boots on the ground' property solutions.
"By acquiring a leading REIB provider with strong presence in the U.S. and EMEA, the improved breadth of our services and enhanced global footprint will create significant growth opportunities for the combined Group's staff and significant value to both our clients and shareholders."
Roy H. March, Executive Chairman of Eastdil Secured, added: "Throughout its history Eastdil Secured has developed strategic partnerships to better serve our clients and be the most relevant and trusted advisor in the real estate investment banking industry.
"This transaction marks the beginning of a new chapter for Eastdil Secured, which will accelerate our growth, create opportunities for our team and significantly enhance our ability to provide best-in-class real estate investment banking services for our valued clients globally.
"As part of Savills, Eastdil Secured will continue to serve as a trusted advisor and provide clients with unmatched capital markets and commercial real estate expertise, now with more resources as part of a larger organisation with complementary geographic reach and advisory capabilities.
"The Savills team shares our commitment to excellence and our emphasis on discretion, collaboration and insight-driven execution. We look forward to continuing to grow and deliver for our clients and partners as part of this enhanced industry-leading global platform."
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