New York-based co-working business, The We Company, formerly known as WeWork, has today announced its acquisition of rival start-up Spacious. The company, formed three years ago, is focused on converting restaurants closed during the day into efficient spaces for co-working. WeWork is a part of many niche co-working companies including Knotel, Convene, Industrious, The Yard, among others.

This deal is the latest in a string of acquisitions for WeWork this year, the latest one being the takeover of SpaceIQ, which was announced just a month ago.

This acquisition will benefit restaurants by providing them another revenue source in an otherwise slim margin field, and expanding their customer base by attracting Spacious members who frequently use the space. According to feedback given by customers, this arrangement benefits them as it is more economical than WeWork and also gives them a hard stop for their workday when the restaurants open for business.

Three-year-old co-working startup Spacious was founded by CEO Preston Pesek and Chris Smothers. Mr. Pesek has extensive knowledge of the commercial real estate sector. The business was founded with a mission to leverage underused urban spaces like vacant restaurants or empty retail spaces to provide flexible co-working solutions.

Since its inception, the company has converted several New York and San Francisco-based restaurants into weekday co-working spaces.

Spacious offers members many payment plans to gain access to a workspace, starting from a day pass worth $20 to an annual membership costing approximately $129 per month.

Following the acquisition, Spacious employees and its workspace lineup will now become part of WeWork.

Chief Product Officer of WeWork, Chris Hill commented on the deal, stating that WeWork is thrilled to have Spacious as a part of their company. He further commented that the real estate and operational expertise of Spacious’ team will allow WeWork to continue providing members with access to their preferred workspaces at all times. 

Details regarding the terms of the acquisition are yet to be disclosed.

Source Credit: https://techcrunch.com/2019/08/27/wework-acquires-co-working-rival-spacious/