CBRE Buys Insignia in $415M Agreement

NEW YORK CITY-Game, set and, finally, match. CB Richard Ellis has agreed to purchase Insigina Financial in a deal valued at $415 million. GlobeSt.com first reported the merger Friday, Feb. 7. ( Read earlier story. ) The price tag includes repayment of net debt and redemption of preferred stock, and is subject to Insignia shareholder approval and other conditions.

The marriage will create what is being touted as the world’s largest brokerage firm. Indeed, the numbers are impressive: The deal forges a real estate services company with revenues exceeding $1.8 billion, 16,000 employees in 47 countries, and what spokespeople call “market leadership positions in major business centers,” including New York, Los Angeles, Chicago, London, Paris and Hong Kong.

The financing of the deal has been the cause of much speculation. Capital for the buy comes in large part from a cash contribution of up to $145 million from Blum Capital Partners. CB Richard Ellis has also received a commitment from Credit Suisse First Boston for the necessary debt financing. CB Richard Ellis was taken private in July 2001 in an $800 million management buyout transaction led by Blum Capital Partners. According to one deal-watcher, the infusion from CSFB was a way to “double down” on its original investment in CB Richard Ellis, made to bank-roll the firm’s move to private status.