Yesterday, Los Angeles-based CB Commercial and Newport Beach, Calif.-based Koll said they signed a letter of intent to merge the two companies in a deal valued at $145 million.

The combined firm has about $759 million in annual revenue and 6,600 employees in more than 200 cities and 33 countries. It will provide property management for about 300 million square feet of space as well as corporate real estate services.

Here in Hawaii, Koll employs about 44 employees and specializes in property management. CB Commercial, a big player in the local office and industrial real estate market, employs about 40, said Frank Orrell, president of CB Commercial Hawaii. CB Commercial Hawaii is about 23 percent owned by its employers.

The combined companies are smaller than the state's largest commercial real estate company, Monroe & Friedlander Inc., which employs about 150.

"This merger will give us an opportunity for us to do what we both do best," said Jim Vance, Koll's local president.

Cary Brazeman, CB Commercial's spokesman in Los Angeles, said it's premature to comment on personnel decisions at the two companies. CB Commercial said it expects the transaction to close in April.

Under the terms of the deal, CB Commercial will issue about 6 million of its shares, or a 30 percent stake, to the owners of closely held Koll. Koll's owners are mainly made up of management, investment bank Freeman Spogli & Co. and Apollo Real Estate Advisors.