WeWork to merge with Spac in $9bn deal

WeWork has agreed to merge with a blank-cheque company in a deal that values the office provider at $9 billion (€7.6 billion), paving the way for a floatation almost two years after its failed attempt to list at a significantly higher valuation.

The merger with BowX Acquisition, a special purpose acquisition company set up by Vivek Ranadivé, founder of California-based software group Tibco, will give WeWork a $1.3 billion cash injection.

It was reported earlier this week that WeWork was talking to investors about a planned merger with BowX, while reporting $3.2 billionn in losses last year as coronavirus shut its co-working spaces around the world.

As part of the deal WeWork will receive $800 million from investors including Starwood Capital, Fidelity and BlackRock, as well as $483 million of cash that BowX raised in its initial public offering. – Copyright The Financial Times Limited 2021