BGC Partners Agrees to Acquire Apartment Realty Advisors (ARA) and Its Members
- Dec 01, 2014
New York—BGC Partners Inc., a global brokerage company servicing the financial and real estate markets, announced that it has entered into agreements to acquire Apartment Realty Advisors (ARA) and its members representing substantially all of ARA’s revenues. ARA is the nation’s largest privately held, full-service investment brokerage network, focusing exclusively on the multi-housing industry.
The acquisitions are expected to significantly drive NGKF’s growth within the multi-housing capital markets space. BGC expects the transactions will be immediately accretive upon closing. The acquired companies will be purchased for a total cash consideration of approximately $110 million when the closings are complete. Additional cash and equity-based earn-outs may be paid if certain performance targets are met in future periods. After the closings, they are expected to generate annual revenues in excess of $100 million and pre-tax distributable earnings in excess of $20 million. The transactions, which are each subject to certain closing conditions, are expected to close in stages with a majority expected to close during the fourth quarter of 2014.
“ARA operates in 28 cities and does $10 billion a year in transactions without NYC metro and southern California. We plan to recruit heavily in those and other markets,” James Kuhn, president of NGKF, tells MHN.