WeWork scoops up boutique coworking brand
In its first deal since going public, WeWork has agreed to acquire Texas-based flexible workspace provider Common Desk.
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Acquiring Common Desk, which has 4,000 customers across 23 offices in Texas and North Carolina, is part of WeWork’s “path towards cost-efficient, strategic growth”, the company said in its announcement of the deal.
The boutique business operates 19 of its 23 locations under management agreements, which means it runs these spaces without entering into a lease itself.
Since coming under new leadership after former CEO Adam Neumann was ousted in 2019, WeWork has similarly made management deals a focus of their growth strategy.
By managing spaces for other companies, WeWork is able to take a portion of rental income in these offiecs without taking on the financial risk of holding long leases.
The operator has already entered into agreements with global landlords like Ivanhoé Cambridge to provide flexible office space in their buildings.
Sandeep Mathrani, CEO of WeWork, said: “With an eye towards partners most aligned with our priorities, Common Desk presents itself as a sophisticated operator with a compelling approach to providing a top notch member experience without sacrificing strong margins or an exceptional product.
“On the heels of a strong year for our business, Common Desk’s operational expertise and portfolio of first-class space will further bolster our value proposition as we focus on strategic growth.”
Nick Clark, CEO of Common Desk, added: “With the added support from WeWork, Common Desk will be able to not only leverage WeWork’s decade of experience in member services to improve the experience of our own members but also leverage WeWork’s impressive client roster to further build out our member base.”
The acquisition is expected to close in March, at which point Common Desk will operate under the name “Common Desk, a WeWork Company.”