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Coworking specialist IWG is merging its digital assets with flexible workspace platform The Instant Group, which has a presence in 18 countries.
IWG's digital assets include EasyOffices.com, Meetingo.com, Rovva and Worka, and the merged entity will offer such services as membership plans, virtual offices, office booking and consulting, according to The Instant Group.
IWG will invest about £270M ($353.6M) to buy a stake in London-based The Instant Group, while that company's management will invest about £50M ($38.1M) into the combined business, Reuters reports.
By the end of 2023, the business will be spun out through a listing either in the U.S. or UK, according to IWG.
“Our clients have been asking us to expand the reach and capabilities of our business to help solve the challenges of hybrid working," The Instant Group CEO Tim Rodber said in a statement. “This merger creates the largest independent global marketplace for flexible workspace and begins to directly answer these challenges.”
On Tuesday, IWG reported an annual loss for 2021, though a smaller one than during 2020. The company said it lost £259.4M ($339.9M) for the year, compared with a loss of £613.3M ($468M) in 2020.
IWG stock jumped 2.5% on Wednesday morning on reports of the deal with The Instant Group after dropping nearly 6% over the last five days. Over the last year, the company's stock price has dropped about 28.4%.
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