Tuesday, that plan was completed with news that commercial real estate and investment firm CBRE Group CBG +0.08% is set to buy Johnson Controls; JCI +0.66% office management business for $1.475 billion.

The cash deal will give CBRE control of the more than 1.2 billion square feet Jonson Controls manages under GWS in 55 countries. GWS has around 16,000 employees and generated $3.4 billion in 2014 revenue. The combined companies will manage close to 5 billion square feet of real estate and corporate facilities. CBRE expects the acquisition to add to adjusted earnings starting next year.


“This agreement with CBRE is a great step for both companies that will allow each of us to build upon our core strengths to create new sources of value for our customers. GWS is a natural fit with CBRE’s offerings, and together they will strategically take the business forward,” said Johnson Controls CEO Alex Molinaroli.


“Clients are increasingly asking us for fully integrated real estate and facilities solutions, which includes self-performing building technical services across their global portfolios,” said Bill Concannon, CBRE’s global corporate services chief, in a statement. Johnson Control’s Global WorkPlace Solutions business will join Concannon’s division which CBRE says has been growing rapidly over the last decade with more large companies outsourcing their real estate services.

The two companies also announced a 10-year strategic partnership under which CBRE will provide services such as facilities management for 50 million square feet of property Johnson Controls still holds. Johnson Controls will allow CBRE to buy air conditioning equipment straight from the factory. The will also partner on a $40 million energy-management innovation lab.