Those who live and work in California may be familiar with a company called WeWork. It has been around for about eight years and is estimated to be worth $35 billion. The company just acquired a business called Teem for $100 million in cash. Teem and WeWork have many of the same customers, and the acquisition is said to help WeWork create flashier tools for its clients.
The merger was also believed to have occurred so that WeWork could diversify its product offering. It is trying to evolve into a software company as much as it is a provider of work spaces for other organizations. Teem has been around for six years and is based in Salt Lake City. It is believed that the company will continue to operate independently.
Teem is not the only business that WeWork has acquired in recent years. In 2017, it bought MeetUp for $200 million. Meetup helps people and businesses organize trips or other events, and in 2018, it paid $400 million for Chinese startup Naked Hub. When taking the Teem purchase into account, WeWork has acquired four businesses in 2018. This is seen as a change in strategy for a business that had not been as aggressive in acquiring other companies in the past despite its financial resources.
The act of acquiring a new business may make it possible for an organization to reach its key metrics. Merging with another company may give an existing business the ability to gain new clients or gain access to products. In some cases, merging may allow both businesses to become more efficient and save money as a result. An attorney may be helpful during the due diligence process and in resolving any disputes that arise during purchase talks.