CBRE Group Inc. said Tuesday that it will pay $1.475 billion in cash to buy a unit of Johnson Controls Inc. that manages spaces for corporations.
When combined, CBRE and Johnson Controls' global workplace solutions unit will manage nearly 5 billion square feet of real estate around the world.
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The deal is expected to close by the fourth quarter.
CBRE said Johnson Controls' global workplace solutions generated about $3.4 billion in revenue last year and has about 16,000 employees.
Johnson Controls, based in Milwaukee, makes heating and ventilation systems for buildings. It first announced plans to sell its global workplace solutions business in September. CBRE, based in Los Angeles, is a commercial real estate services company and investment firm.
As part of the deal, CBRE will agree to use Johnson Controls as its heating and ventilation provider for the next 10 years and CBRE will manage Johnson Controls' 50 million square feet of real estate.
Shares of CBRE rose $2.30, or 6.3 percent, to $38.71 Tuesday. Shares of Johnson Controls rose 61 cents to $50.44.