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- WeWork parent The We Company has acquired Spacious, a startup that re-purposes restaurants as coworking spaces in the hours before they open.
- Terms of the deal were not disclosed.
- The acquisition comes on the heels of the We Company’s highly-anticipated IPO filing earlier this month.
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The We Company, the parent company of popular coworking space provider WeWork, just acquired Spacious, a startup that allows workers to rent out space in restaurants in the hours before they open.
Both companies announced the news on Tuesday.
Terms of the deal were not disclosed, but Spacious was last valued at $29.1 million as of May 2018, according to Pitchbook. The We Company positioned the acquisition as a means of adding more flexible options for those with a We Membership, the company’s on-demand service that allows individuals to book office space for the day.
"Spacious’s team and real estate and operational expertise will help WeWork to continue to give our members access to the workspace they want, when they need it," Chris Hill, WeWork’s chief product officer, said in a statement. "We’re thrilled to welcome Spacious to WeWork."
Read more: WeWork IPO reveals company loaned millions to CEO Adam Neumann and other company execs
Spacious was founded in 2016 by Preston Pesek and Chris Smothers, and the company has converted restaurants in New York City and San Francisco into coworking spaces. Users have the option to purchase a $20 day pass or choose from annual, monthly, or three-month memberships starting at $129 per month.
"In WeWork, we have found much natural alignment across our visions for the integration of work, technology, and physical space," Pesek wrote in a blog post announcing the acquisition.
The deal comes after The We Company filed for an initial public offering earlier this month, revealing that the company has racked up losses to the tune of $1.6 billion. The We Company has not said how much it plans to raise through its IPO, although reports suggest it could raise at least $3 billion.
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Source: Business Insider – leadicicco@businessinsider.com (Lisa Eadicicco)