JLL Closes Acquisition Of HFF, Boosts Capital Market Business

Jones Lang LaSalle Incorporated (NYSE:JLL) — popularly known as JLL — has completed its acquisition of HFF Inc. This cash-and-stock transaction, valued at about $1.8 billion and first announced in March 2019, comes as part of JLL’s effort to substantially boost its Capital Markets business.

Notably, HFF offered clients a fully-integrated capital market platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and commercial loan servicing. The company has closed more than $800 billion in excess of 27,000 transactions since 1998 and generated revenues of more than $650 million in 2018.

Therefore, following the acquisition, with a global team of more than 3,700 capital market professionals across 47 countries, JLL now has a superior ability to offer capital market services and expertise to its clients. Also, the combined entity is projected to deliver significant run-rate synergies, estimated at around $60 million, over two to three years.

Former CEO of HFF — Mark Gibson — has joined JLL as CEO, Capital Markets, Americas, as well as the co-chair of its Global Capital Markets Board.

JLL financed the cash part of the purchase price consideration with a mixture of cash reserves and its existing syndicated credit facility.

Admittedly, JLL has a diversified product & services range which helps register balanced revenue growth across its operating markets. Also, spate of strategic investment activities, in a bid to capitalize on market consolidations, will likely boost its long-term profitability. In fact, market-share expansion will help JLL achieve stellar growth and a decent cash level, aiding consistent and timely deleveraging.

JLL currently carries a Zacks Rank #3 (Hold). So far this year, shares of the company have gained 11.2%, underperforming the industry’s 24.8% increase.



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Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report

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