by Dan Rafter
Mergers and acquisitions are a big part of the commercial real estate industry, often creating mega companies that can alter the competitive landscape. It’s early, but it looks as if the recently completed merger between DTZ and Cassidy Turley is one of those deals.
DTZ and Cassidy Turley as of early January began operating as a single commercial real estate firm, following the acquisition of Cassidy Turley by a private equity investment consortium backed by TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.
This consortium, of course, acquired DTZ in November of 2014.
How big is the new DTZ? (The Cassidy Turley name is mostly disappearing.) The new company represents $2.9 billion in annual revenues and boasts more than 28,000 employees. It also manages 3.3 billion square feet of property across the gloobe.
There are some leadership adjustments, too. Tod Lickerman will serve as the global chief executive officer of the integrated company. Joseph Stettinius Jr., Cassidy Turley’s chief executive officer, is now chief executive of the Americas, while Brett White, former chief executive officer of CBRE Group, who also invested in the acquisition, will become full-time executive chairman beginning in March of 2015.
“This combination is an excellent cultural fit and mutually beneficial for both companies, given our strong position in the U.S. market and DTZ’s global footprint,” said Stettinius in written statement. “As DTZ and Cassidy Turley join forces under our new brand and ownership, I’m excited about the advantages we can now offer our clients and our people.”
In a blog post about the move, Stettinius says that DTZ is now a top-three global commercial real estate services firm. He points to the combination of the smaller and “more tenacious” Cassidy Turley with the global power of DTZ as a reason why the acquisition of Cassidy Turley made so much sense.
“DTZ’s established full-service resources throughout Europe and Asia, paired with Cassidy Turley’s legacy of strong market leadership in the U.S. will immediately create new advantages for our clients,” Stettinius said in his post.
Lickerman, too, said that the acquisition will result in a stronger DTZ.
“The combination of our two companies under new ownership has immediately enhanced our ability to meet our clients’ needs with speed, efficiency and flexibility—service qualities that are unique among global firms our size,” Lickerman said in a written statement.
You can watch the video above to learn more about this big commercial move.