IWG, the world’s biggest serviced office group, has received interest in selling part of its business or raising funds for its shared office brand Spaces, a major rival to coworking company WeWork.
“Spaces this year will become about the same size as WeWork and it’s a profitable business,” said chief executive Mark Dixon. “Investors look at that and say ‘WeWork seems to be worth $42 billion and the whole [market capitalisation] of IWG, which makes pretty good cash flow, is $2.6 billion.”
Just last year, IWG had talks with many potential buyers but failed to reach any deal.
A new deal would come on the heels of reports stating that the company has had a dip in profits because the cost of growing and restructuring its portfolio.
In 2018, operating profits fell about 6%, while revenues grew 7.8% to £2.5 billion due to a rise in income.