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Altus, Integra Disclose Merger, Plan $1B Firm

FORT WORTH-The plan is aired to stifle speculation about the buy-in and the buy-out. The marriage will create one of the world's largest independent valuation and consulting firms.

By Connie Gore | Updated on April 28, 2008

[IMGCAP(1)]FORT WORTH-Altus Group Income Fund and Integra Realty Resources Inc. have aired a plan to merge, thwarting all market speculation in the early stages of due diligence. The financials have yet to be firmed up, but Toronto-based Altus has vowed it will be accretive to shareholders regardless of the final deal size.

The merger tentatively is slated to close in early October. The outcome will create one of, if not the, largest independent valuation and consulting companies in the world for the real estate industry. Ben Loughry, a founding stockholder and managing partner of Integra’s Fort Worth and Dallas offices, tells GlobeSt.com that the goal is to be a $1-billion company in two to three years. Loughry and Integra’s other 10 directors on its executive board initially will get two-year terms on Altus’ board of trustees.

During Altus’ conference call yesterday to discuss the merger, CEO Gary Yeoman told analysts that the Integra merger would be much like its others in recent years, with the seller taking a stake in the company to show its commitment. Both boards unanimously approved the merger plan in recent weeks, clearing the deck for a non-binding letter of intent and the airing of as many details as possible at this stage. Altus’ stock shot up 8.96% to $18.25 per unit by the time the Toronto Stock Exchange closed for the day. The acquisition will be bundled with cash, equity and bank financing.

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