Global real-estate firm, Jones Lang LaSalle Inc, has confirmed the acquisition of King Sturge, a UK based property consulting company with international operations. The deal has cost Jones $319 million; the first $98 million is payable immediately and the rest will be paid over five years.

The acquisition will position Jones as the leading property company in the UK and mainland Europe. The new organisation will employ 5,300 staff in 30 countries, with 2,700 UK staff in 34 offices. All King Sturge offices will be rebranded as Jones Lang LaSalle in the very near future.

The real-estate market is undergoing a period of consolidation, with larger participants looking to acquire smaller businesses in advance of a recovery in the market. Saint George Participations was in discussion with DTZ Holdings PLC over a possible takeover bid, and CB Richard Ellis Inc bought a large stake in the real estate unit of ING Groep NV earlier this year.

Jones' CEO for EMEA, Christian Ulbrich, commented: "The obvious strategic and cultural fit between Jones Lang LaSalle and King Sturge makes this a logical and very attractive proposition for both firms. It gives us a scale and depth of expertise that will make our client service delivery capabilities second to none in both the U.K. and continental Europe."

Joint senior partner at King Sturge, Richard Batten, added: "This is a coming together of two great companies who are culturally aligned, with fantastic business synergies, to create the best firm of property advisers in Europe."

Author: Paul Chapman, Analyst