WeWork is looking to Texas and North Carolina for some southern hospitality in its first acquisition since going public.
WeWork said Tuesday it bought Dallas-based coworking space Common Desk. Founded in 2012, Common Desk’s network reaches 4,000 customers at a total of 23 locations across 13 cities in Texas and North Carolina. The Common Desk brands also include Dallas café and Fiction Coffee. The company’s assets will add to WeWork’s 700+ locations in about 150 cities and more than 35 counties, including offices in Dallas, Fort Worth, Plano and Irving.
The company will be conducting business as “Common Desk, a WeWork Company.” The deal is expected to close by March, according to WeWork’s statement.
The acquisition marks a shift from WeWork’s 2020 strategy of offloading companies such as office management startup Managed by Q and social network Meetup.
WeWork praised Common Desk’s space design and member experience, and highlighted their shared vision of “creating meaningful communities through member-focused hospitality.”
“On the heels of a strong year for our business, Common Desk’s operational expertise and portfolio of first-class space will further bolster our value proposition as we focus on strategic growth,” said WeWork CEO Sandeep Mathrani, who replaced Adam Neumann upon his departure in February 2020.
“Similar to WeWork, Common Desk is a company built on the concept of bringing people together to have their best day at work,” said Common Desk CEO Nick Clark.
Mathrani and Clark’s statements echo Neumann’s philosophy on coworking spaces, “to create a world where people make a life and not just a living.”
WeWork went public in October via SPAC merger with BowX Acquisition Corp, two years after their dead-on-arrival IPO. Following the move, WeWork’s net loss narrowed to $802 million in the third quarter of 2021 from the $941 million in the same quarter a year earlier.
In contrast to WeWork’s earnings history, Common Desk has managed consistent growth through strategic agreements with landlords.