LONDON, UK: IWG plc, the world’s leading supplier of flexible workspace solutions, has entered into contract to merge certain of its digital and technology assets with The Instant Group, a global business which operates as the world’s leading independent provider of flexible workspace platform and services. 

IWG will invest net cash of c.£270 million to acquire the shares of selling shareholders and provide capital for growth with The Instant Group management investing a further c.£50 million into the company, a bourse filing noted.

Mark Dixon, IWG’s Chief Executive Officer commented: “I am delighted with the merger of IWG’s digital assets with The Instant Group. It’s a fantastic investment behind a world-class management team, positioning IWG to be a market leader in the digital-led future of workplace platforms. This creates a clear path for value creation and will harness the next generation of digital-native workers and the huge market potential of flexible working, building long-term and future-proof growth as the world’s leading supplier of flexible workspace solutions.”

Tim Rodber, The Instant Group’s Chief Executive Officer commented: “The office market has been irrevocably altered by the pandemic with hybrid working becoming the norm. Our clients have been asking us to expand our capabilities and geographic reach to help solve this challenge. Similarly, our partners that provide flexible workspace solutions have been asking for a better route to market for their products and an ability to monetise their capacity.

This merger creates a marketplace for flexible workspace and begins to directly answer these challenges by simplifying where workers and the businesses they serve choose to work.”

Strategic Rationale

Market growth

·     30% of the global office market is expected to be made up of flexible office solutions by 2030 and the market for flexible workspace itself has grown on average by 7% year on year between 2010 and 2020

·     The Coronavirus pandemic has accelerated the move to flexible working, and the increased imperative for corporations to reduce fixed costs in their office estate will further augment the rate of market growth to c. 30% per annum

Digital platform

·     The company will be a global leader in the large, dynamic and fast growing flexible workspace booking platforms market

·     The company will be the preferred platform for booking, services and inventory management, following the similar models already successfully operating in the travel and hotel sectors

·     Bringing together more than 30 years of experience and investment in scheduling, inventory management, price optimisation and e-commerce, the platform will be leveraged to create best in class technology assets, fully automating buying journeys and customer lifecycle management

Global footprint

·     Delivery of independently procured solutions in more than 40 languages and 175 countries through accessing over 25,000 buildings

Breadth of products and services

·     The company will deliver end-to-end solutions including virtual offices, meeting rooms, flexible workspace and client dedicated managed offices. The Instant Group also has world class consulting capability to tackle ever more complex challenges such as hybrid working, new portfolio strategies or sustainability in the workspace

Independent management team

·     The company will be led by a best in class independent management team, each with extensive experience of business growth in the digital space and well placed to drive significant shareholder value

·     The Instant Group will operate as a commercially independent entity, with its own executive team and board

www.iwgplc.com