CB Richard Ellis Group Inc. said Tuesday that it has agreed to buy rival Trammell Crow Co. for $2.2 billion.

The Los Angeles-based real estate company will pay $49.51 per share, a 27 percent premium on the Dallas-based company's Monday closing share price, bringing the total cash paid to $1.8 billion.

The move will more than double CB Richard Ellis's property management business to about 18 percent of revenue given Trammel Crow's strength in that area.

The acquisition comes days after CB Richard Ellis announced a 62 percent jump in third quarter profit, prompting the company to raise its outlook for the fourth quarter.

Shares in CB Richard Ellis closed up $1.81 to $30.03 Tuesday.

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