IWG Considers £800m Deal For Digital Platform Worka

IWG is working with Wells Fargo on the sale of up to 50% of its digital assets platform.

What’s going on:

Exploring the possibility of a major sale, IWG has opened a data room for potential buyers to purchase a 50% shareholding in Worka.

Bankers from Wells Fargo have been enlisted to help run the process, which is expected to draw interest from a variety of financial investors, according to Sky News.

Why it matters:

IWG plans to combine its digital assets with those of The Instant Group — injecting £270m into the combined entity.

The newly united entity, now rebranded as Worka, is expected to bring in a whopping £271 million in revenue and £112 million in earnings before interest, tax, depreciation and amortization in 2022. If a potential deal transpires at the estimated value of £1.5 billion, it would be just shy of IWG’s current market value — which has seen a drastic downturn of almost 50% over the past year.