IWG Extends Deadline For Takeover Offers From Private Equity Firms

Earlier this year International Workplace Group (IWG) received takeover proposals from three separate private equity groups
The deadline for TDR Capital, Terra Firma, and Starwood Capital to make an offer has been pushed back to August 7th
This shows a clear disposition from IWG’s part to sell

In May this year Regus and Spaces’ holding company, International Workplace Group (IWG), was approached by three separate private equity firms for a potential takeover. After the announcement IWG’s share price experienced a 10% increase.

The company’s current market cap is £2.7bn and it has already rejected a £2.5bn takeover offer from Brookfield and Onex, a Canadian Consortium.

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IWG has gathered significant attention from potential buyers in the past months. The flexible workspace industry has experienced exponential growth and many outsiders have started to acknowledge the significant impact that it has had on CRE.

The buyout offers come at a time when IWG’s eight-year-old rival WeWork is experiencing rapid international expansion and is currently valued at $20bn, with some even arguing that it could potentially reach $35 bn in the near future.

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By comparison, IWG was founded in 1989 and is only worth one-third of WeWork, even though it has been one of the industry’s leading firms for almost 3 decades.

The extension is a clear indicator that IWG is willing to sell. In fact, accepting one of the offers could prove to be beneficial for the company as it would take them out of the public ownership scrutiny and would provide them with additional time to experience their return of investment.

Private Equity Firms Dive Into Flexible Workspace

Since mid-2017 we’ve seen private equity firms and property groups show increased interest in the flexible workspace industry — particularly in the UK, the US, and Asia.