WeWork Sells Managed By Q At An 89% Discount
San Francisco-based Eden will pay $25M for the company, TechCrunch reports. WeWork, which snapped up tech companies at a rapid pace before its botched IPO in September 2019, bought Managed by Q for $220M less than a year ago.
WeWork's said its acquisition spree was helping to bulk up its tech capabilities ahead of an IPO. Now that the company has refocused on its core coworking business, it is selling off subsidiaries almost as quickly as it acquired them during the Adam Neumann era.
“The successful divestiture of Managed by Q is the latest example of how WeWork continues to focus on our core work space business,” the company told Forbes.
Dan Teran, co-founder of Managed by Q, had been in talks to buy the company back from WeWork, but the deal fell through, The Real Deal reports.
Eden was able to buy its rival after a recent round of investment funding raised roughly as much as the purchase price. JLL Technologies, the technology division of JLL, led that investment round. Thus far, Eden has raised a total of $69M in investment capital.
Managed by Q's client base is largely midsized and larger companies, operating in New York, Boston, Chicago, Los Angeles, San Francisco and Silicon Valley. Eden, by contrast, has a client base of small and midsized companies in various U.S. markets.
Before WeWork snapped up Managed by Q, that company had itself bought smaller tech companies, including NVS, an office space planning and project management service, and Hivy, a platform that facilitates communication between employees and office managers.