February 19, 2003—CB Richard Ellis has entered into a definitive agreement to acquire Insignia Financial Group, Inc. for $11.00 per share of common stock in cash. Upon completion, the transaction would create a real estate services company with revenues exceeding $1.8 billion, 16,000 employees in 47 countries, and market leadership positions in major business centers, including New York, Los Angeles, Chicago, London, Paris and Hong Kong.
The all-cash transaction is valued at approximately $415 million. Upon closing, the combined company will operate globally as CB Richard Ellis, and is expected to:
- generate $90 billion of annual sales and leasing transactions (based on 2001 activity)
- rank as the world’s largest commercial property manager, with a combined portfolio of nearly 850 million sq. ft. on a worldwide basis
- conduct $32 billion in capital markets transactions, including property sales and mortgage banking
- manage more than $13 billion in assets, primarily for institutional partnerships
- conduct in excess of $290 billion of appraisals
- offer the industry’s largest proprietary market research infrastructure, including nearly 300 local market research professionals, complemented by the macro-analytical and forecasting capabilities of its Torto-Wheaton Research unit
In addition to Insignia shareholder approval, the transaction, which is expected to close in June, is subject to the receipt of financing and regulatory approvals. In 1998, Insignia acquired the U.K. operations of Richard Ellis and CB Richard Ellis, then known as CB Commercial, acquired the international operations of Richard Ellis.
For more information, contact CB Richard Ellis.
