Newmark paid $114.8 million (£90.92 million) for UK real estate adviser Gerald Eve, according to a US Securities and Exchange Commission filing that breaks down the market-moving brokerage transaction for the first time.
Newmark reports that the total consideration for the acquisition was $114.8 million in "total fair value" comprising cash of $101.2 million, a "contingent consideration" of $11.9 million and an accrued liability of $1.8 million. The excess over the "fair value" of the net assets bought was recorded as goodwill of $77.1 million, of which $55.9 million is deductible by Newmark for tax purposes.
The acquisition in aggregate contributed $9.3 million to Newmark’s revenues for the three months ended 31 March 2023.
CoStar News first revealed Newmark was in talks to buy Gerald Eve in August 2022 with the transaction completing in March 2023.
The deal sees Newmark join the major league of commercial real estate advisers in the UK. For recent interview with Newmark CEO Barry Gosin and Gerald Eve senior partner Simon Prichard about the transaction and their aspirations for the business click here.
Newmark has been on a major acquisitions spree recently. In April 2022, Newmark completed the acquisitions of two companies – BH2, the London-based real estate advisory firm led by Tony Gibbon, and McCall & Almy, a multi-market tenant representation and real estate advisory firm in the US.
In May 2022, Newmark completed the acquisition of Open Realty Advisors and Open Realty Properties, which together operate as Open Realty, a US retail real estate advisory firm.