The co-working and flexible space provider WeWork has entered into a definitive merger agreement with the special purpose acquisition company (SPAC) BowX in order to become a publicly listed company.

The deal values WeWork at an initial enterprise value of approximately $9bn and the transaction will provide the company with $1.3 billion in cash to fund its growth plans into the future.

The transaction itself will be funded with BowX’s $483m of cash in trust in addition to a fully committed $800m private placement investment at $10 per share led by investors including Insight Partners, funds managed by Starwood Capital Group, Fidelity Management & Research Company LLC, Centaurus Capital and funds and accounts managed by BlackRock.

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Source: Tech Radar

By Anthony Spadafora