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WeWork undresses deal for Naked Hub
Posted on Thursday, 12 April 2018 13:08
WeWork has announced plans to take over Naked Hub, a China-based co-working firm, in a bid to boost its presence in the world’s second-largest economy.
While the company did not disclose the value of the transaction, two people familiar with the deal told Bloomberg the New York-based firm will pay about USD 400.00 million, the majority of which will be in the form of equity.
Naked Hub is part of the Naked Group, a leading hospitality, design, technology and lifestyle brand founded in 2007 with over 1.00 million guests worldwide.
The target was officially launched in 2015 and provides 10,000 members across 24 locations with a network of shared workspaces.
WeWork said it also has 10,000 members across a dozen sites in China and by the end of this year it expects to have 40,000 across 40 locations in the country.
The addition of NakedHub will see the community grow to 80,000 people this year, expanding to 1.00 million by the end of 2021.
According to a report by Reuters, WeWork is billed as one of the world’s leading startups and is backed by SoftBank, which has invested around USD 4.40 billion in the firm, valuing it at around USD 17.00 billion.
The company, that last year was rumoured to be exploring an initial public offering, has already closed one acquisition this year after it picked up online search engine optimisation group Conductor for an undisclosed amount.
This is also WeWork’s second purchase of a competitor in Asia after picking up SpaceMob of Singapore in 2017.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 2,346 deals targeting data processing, hosting and related services providers announced globally since the start of 2018.
Cayman Islands-incorporated Tencent featured in the largest deal as Naspers via MIH TC Holdings agreed to sell a stake worth HKD 76.94 billion (USD 9.80 billion). JPMorgan also offloaded an interest in the internet instant messaging service provider for HKD 73.26 billion in the second largest deal.
US-based MuleSoft, China’s Shanghai Lazhasi Information Technology and Ant Financial Services Group of China, among others, have also been targeted.
© Zephus Ltd