A high-profile merger is set to create a ‘flexible workspace marketplace’.
Switzerland-headquartered IWG plc, a global supplier of flexible workspace solutions, is to merge certain of its digital and technology assets with The Instant Group, a leading flexible workspace platform based in London.
IWG will invest £270 million to acquire the shares of selling shareholders and provide capital for growth, with The Instant Group management investing a further £50m into the company. Following completion, the key executive management of The Instant Group will run the business.
It is anticipated that the newly merged company will be spun out by the end of 2023 via a listing on the US or UK markets.
The Instant Group delivers solutions in 18 countries across EMEA, Americas and APAC, serving 48% of the FTSE 100 and 42% of the S&P 500. The new company will deliver solutions – including virtual offices, meeting rooms, flexible workspace and client dedicated managed offices – in 40 languages and 175 countries through accessing over 25,000 buildings.
The companies said the deal will create the world’s leading independent fully integrated workspace platform, almost doubling its EBITDA in 2022 to approximately £31m.
“I am delighted with the merger of IWG’s digital assets with The Instant Group,” said IWG CEO Mark Dixon.
“It’s a fantastic investment behind a world-class management team, positioning IWG to be a market leader in the digital-led future of workplace platforms.
“This creates a clear path for value creation and will harness the next generation of digital-native workers and the huge market potential of flexible working, building long-term and future-proof growth as the world’s leading supplier of flexible workspace solutions.”
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Tim Rodber, CEO at The Instant Group, commented: “The office market has been irrevocably altered by the pandemic with hybrid working becoming the norm. Our clients have been asking us to expand our capabilities and geographic reach to help solve this challenge.
“Similarly, our partners that provide flexible workspace solutions have been asking for a better route to market for their products and an ability to monetise their capacity.
“This merger creates a marketplace for flexible workspace and begins to directly answer these challenges by simplifying where workers and the businesses they serve choose to work.”