Cousins Properties and Tier REIT are planning to merge to form a company with a market cap of at least $6 billion. The combined entity will retain the Cousins name.
The real estate investment trusts will engage in a $1.5 billion all-stock deal, wherein Cousins will issue 2.98 new common shares in exchange for each share of Tier REIT stock. The synergy is expected to bring in $18.5 million of annual net savings.
If the deal gets finalized, Cousins shareholders will hold the majority stake – around 72% - in the combined company, and Tier shareholders will own the rest.
Cousins CEO Colin Connolly indicated that the deal would culminate into "an unmatched portfolio of trophy office properties in the premier submarkets of Atlanta, Austin, Charlotte, Dallas, Phoenix and Tampa" .The merger is expected to close in the third quarter.