CBRE Group Inc (NYSE:CBG) announced its plans to enter into an agreement for the acquisition of GlobalWorkplace Solutions (GWS) business of Johnson Controls Inc. (NYSE:JCI).
Global work solutions are a competitive provider of Cohesive Facilities Administration solutions.
The acquisition of GWS will see the business operating as part of CBRE Group. Global workplace solutions experienced surge in profits within the last ten years and has been experiencing positive growth. The acquisition is expected to carry over the successful streak to CBRE Group. The combined expertise from both firms in terms of engineering and leasing is expected to deliver more appealing service to the two firms.
CBRE’s president and Chief executive officer said that the company expects their services to receive a boost from the talented team at GWS.
The contract by the two companies will see them strategically working together for the next ten years. CBRE will provide a portfolio of real estate services to Johnson Controls. Johnson Controls, on the other hand, will provide CBRE, with building automation systems, HVAC equipment, and other services on their partnership docket.
The two companies are planning on jointly fund an innovation lab, which is aimed at developing cutting-edge solutions to manage energy. The research and innovation solutions are expected to significantly lowering costs.
The lab will also bring together the energy, service, data and products aimed at creating value for investors of real estate and occupiers. This will give the two companies the capacity to deal, with the increasing demand for fully assimilated real estate and facilities solutions.
Bill Cannon, who is the CEO of GCS for CBRE Group Inc (NYSE:CBG), reported that GWS was a great strategic move for their plans through expertise and great leadership that GWS conducts.
GWS’s president, John Murphy, said that the joint venture is expected to lead to the two companies, taking up global leadership in service and value provision to their clients.
Combined, the two will handle over 5 billion sq. ft. of real estate and corporate facilities all over the world.