The transaction will create synergies and be immediately accretive, according to a prepared statement, with the full expected annual gross savings of approximately $80 million in G&A to be realized by the end of 2012. The company anticipates it will have an improved cost of capital with greater financial flexibility and that its expanded footprint will generate increased revenue opportunities by allowing it to better serve the needs of its customers.

Moghadam, AMB’s former CEO, and Rakowich, ProLogis’ former CEO, will serve as co-CEOs of the combined company through December 31, 2012, at which time Rakowich will retire and Moghadam will become sole CEO. Until then, Moghadam will focus on shaping the company's vision, strategy and private capital franchise, and Rakowich will focus on operations, specifically the integration of the two platforms and the optimization of merger synergies. In addition, Moghadam will be chairman of the Board and Rakowich will serve as chairman of the board's executive committee.

The company's corporate headquarters will be in San Francisco, and the company's operations headquarters will be in Denver. The combined company is structured as an UPREIT. Besides Moghadam and Rakowich, the members of the Board of Directors include: Lydia H. Kennard, J. Michael Losh, Jeffrey L. Skelton and Carl B. Webb, former members of the board of directors of AMB; and George L. Fotiades, Christine N. Garvey, Irving F. Lyons III, D. Michael Steuert and William D. Zollars, former members of the board of trustees of ProLogis. Irving F. Lyons III will serve as lead independent director.

Moghadam points out that “The long-term success of any merger depends on the people. I continue to have confidence in the future of this company because we are fortunate to have the best team in the industry.”

Morgan Stanley acted as financial advisor to ProLogis, and Greenberg Traurig and Mayer Brown acted as legal advisors to ProLogis. J.P. Morgan Securities LLC acted as financial advisor to AMB, and Wachtell, Lipton, Rosen & Katz acted as legal advisor to AMB.

In a previous GlobeSt.com analysis of the merger, Kurt Strasmann, managing director in Voit Real Estate Services’ Anaheim, CA-office said that the combination of these two companies “will help create the most efficient, effective industrial real estate organization with the best, most diverse talent.” He continued to point out that with the two company’s existing tenant base, what the merger would do is that “it would allow them to really be able to help service those existing companies in multiple markets and expand that base dramatically, so it would be huge.”

In addition, John Magness of Hillwood Properties previously told GlobeSt.com that on the one hand, the merger “is like Coke acquiring Pepsi.” He pointed out that the merger combines the capital strength and breadth of ProLogis with the core market focus and disciplined management of AMB. Magness previously told GlobeSt.com that the merger would create opportunities for companies like Hillwood Properties, for example. “It should produce a lot of opportunities for companies with much lower overhead, lower operating costs, more nimble capital.”