Real estate service firm DTZ, backed by private-equity giant TPG, has reached a deal to acquire rival Cushman & Wakefield Inc. for USD 2 billion, according to WSJ. The resulting company will keep the Cushman & Wakefield name and will have around 250 offices in more than 50 countries, including Romania. Its annual revenue is estimated at over USD 5 billion.
Alongside TPG, PAG Asia Capital and the Ontario Teachers’ Pension Plan have also invested in this deal. The venture bought DTZ from Australian engineering firm UGL last year for USD 1.05 billion.
According to the WSJ, the resulting consultancy firm will come in direct competition with the main global players on this market – CBRE Group Inc. and JLL. “Numerous firms had been vying for the No. 3 spot but none have come close to CBRE with USD 9 billion in 2014 revenue and JLL with USD 5.4 billion,” according to a WSJ article.
Cushman & Wakefield was founded in 1917 and it is owned Italy’s Agnelli family, the founder of the Fiat auto group.
Both companies are present locally through franchise and affiliated companies. DTZ has an affiliated agency in Romania (DTZ Echinox) while Cushman & Wakefield has a franchise agreement with Activ Property Services since 2013 when it left the local market. The company had bought Activ Property Services in 2006 when it entered the local market.