The company is acquiring Dallas-based Staubach in a $613 milliondeal, as previously reported by GlobeSt.com. More than 60% of theacquisition payments will be made in a deferred payment structure,Martin says. If certain growth objectives are not met, some of thedeferred payments can be delayed up to 12 months, she says. Thedeal also calls for potential earn-out payments that are subject toperformance metrics over a four-and-a-half year period after theclosing. "The earn-out opportunity of $114 million commences asearly as 2011 and it is based on performance incentives that are analignment of our two merged tenant representational organizationsto work successfully together," Martin said during the call.

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The merger "is the premier US brand in tenant representation,"Dyer says. Approximately 85% of Staubach's revenue comes fromtenant representation. Staubach is expected to have revenue of $375million at the end of its current fiscal year, which ends June 30,Martin says. "The four-year compound annual growth rate is 15% forthe last four years," Dyer says. Staubach employs 1,000professionals, of which about 700 are revenue producing.

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The merger will diversify the firm's revenue and is appealingbecause the tenant representation revenue is not dependent oncapital markets, Martin says. "One of the aspects that the tenantrepresentation offers is that you have a very large amount of justannuity characteristics to it because leases just have acontractual life," she says. "At the end of that, a tenant needs tomove or stay or do something, all of which generates a feeopportunity." The merger will help the firm "against the capitalmarkets weakness," Martin adds.

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Roger Staubach, who founded Staubach 31 years ago, will becomethe executive chairman for the Americas and will be on the firm'sboard of directors, Dyer says. Greg, O'Brien, who has beenStaubach's CEO, will become the CEO of brokerage for the Americasand John Gates, who is currently Staubach's president and COO, willbe the president of brokerage for the Americas. Both O'Brien andGates will also be on the firm's Americas executive committee, Dyersays.

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The merger will add 14 new corporate offices, bringing the totalnumber of offices worldwide to 184, Dyer says. "The majority of theprojected integration expenses, of approximately $25 million, willbe occurred in 2008," Martin says. Staubach has more than 300stakeholders, "the majority of which are operators in the company,"she says.

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There has been talk that the cultures of the two firms are quitedifferent, but Dyer says there are some important similarities."Both businesses are strongly committed to clientservice,…commitment to dealing with honesty and integrity…,and weare committed to collaborating internally," Dyer says. There is "ahuge basis of mutual respect as well," he adds. "If there is adifference, it is around the level of the way in which the twobusinesses compensated their revenue producers," he says. "We, atJones Lang LaSalle, have been moving over time towards a morestrongly variable compensation structure. The variable part linkedmore and more directly to actual production. So, we have beenmoving towards each other in that sense."

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Staubach had only represented tenants while JLL has representedboth tenants and investors, Dyer says. However, JLL has processesin place, as will the combined firm and Staubach believes thatthere will be "advantages" as long as there are "the appropriatesafeguards," Dyer says.

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The merger is one of many acquisitions JLL has done recently butofficials are not precluding any future mergers. "We have had apretty robust beginning of the year with multiple acquisitionsaround the world," Martin says. "We would not see ourselves doinganything of size. This structure does not prohibit ourselves fromlooking at some smaller opportunities as we continue to look aroundthe globe in a consolidating industry."

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