WeWork is making another move to diversify beyond shared-office leasing by acquiring office management startup Managed by Q.
The acquisition combines two companies that, according to Quartz, have taken “different approaches to workplace disruption and the on-demand economy.”
Managed by Q, which was founded in 2014 , offers a platform that office tenants can use to hire service providers such as cleaning crews, receptionists or IT support staff. It has raised a total of $128.25 million from investors such as GV, RRE, and Kapor Capital.
WeWork said its “scale and presence, combined with Managed by Q’s deep expertise in workplace management, will deliver an unprecedented and seamless office experience for growing companies everywhere.”
Terms of the deal were not disclosed but CNN reported that WeWork paid around $200 to $250 million, citing a source familiar with the matter.
WeWork rents out workspaces to startups and provides large corporate clients with flexible satellite offices. “Managed by Q works mainly with medium and larger-size companies, an area of the market where WeWork wants to expand after building a customer base focused on smaller companies and large corporate customers,” The Wall Street Journal said.
WeWork’s largest acquisition to date is Naked Hub, a Chinese co-working startup, that it agreed to buy for about $400 million a year ago. It also bought meetings analytics platform Teem in September and Euclid, which tracks movement in the office space, in February.
Managed by Q currently serves the markets of New York, San Francisco, Los Angeles, Chicago, Boston and Silicon Valley, with plans to aggressively expand following the acquisition.
“We are excited for this incredible opportunity to deepen our commitment to realizing our ambitious vision of building an operating system for the built world,” Managed by Q CEO Dan Teran said.
“WeWork is uniquely positioned to invest in workplace technology and services, and I look forward to partnering with their team to build more robust products for our clients and create a global platform to help companies push the bounds on our collective potential,” he added.