March 12 (Reuters) - Global real estate company Savills said on Thursday it would acquire real estate investment bank Eastdil Secured for an enterprise value of $1.1 billion. (Reporting by Raechel
UK's Savills buys Eastdil Secured for $1.1 billion to expand US presence but Middle East tensions hit shares
Savills' Acquisition of Eastdil Secured and Market Impact
Deal Overview and Strategic Rationale
March 12 (Reuters) - UK's Savills said on Thursday it would buy real estate investment bank Eastdil Secured in a $1.1 billion deal, including debt, as it looks to expand in North America and deepen its capital-markets presence, though concerns over Middle East tensions drove shares lower.
The deal positions the property adviser to benefit from a pickup in real estate dealmaking, as U.S. investment banking revenues rise on the back of stronger M&A pipelines and firmer debt underwriting activity.
Eastdil Secured's Business Profile
Eastdil Secured specialises in mergers and acquisitions, debt placement, structured credit and loan sales. It generates 76% of its revenue from North America, and has a diversified global footprint across Europe and Asia Pacific.
Deal Structure and Financial Details
Under the deal, Eastdil's 85 senior employees will collectively hold 6.3% of the enlarged Savills. The transaction will be funded through debt and the issue of new ordinary shares in Savills, representing about 16% of the enlarged company.
Expected Synergies and Earnings Impact
Savills expects the deal to deliver low-to-mid teens underlying earnings per share accretion in 2027 and generate direct revenue synergies of at least 60 million pounds annually over the medium term.
Market Reaction and Geopolitical Risks
Middle East Concerns Weigh on Shares
MIDDLE EAST CONCERNS WEIGH ON SHARES
Recent Financial Performance
The acquisition comes after Savills also reported strong 2025 results with revenues rising 6% and underlying profit before tax increasing 11.4%, driven by a particularly strong fourth quarter in its transactional business.
Share Price Impact and Outlook
However, its shares dropped nearly 5% in early trading as escalating tensions in the Middle East have clouded the global economic outlook.
"It is difficult at this stage to assess the potential impact of the conflict in the Middle East, including any broader macroeconomic or geopolitical effects," Savills said.
It has around 800 employees in the region, which contributes roughly 5% of underlying profit.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Louise Heavens)
