Shared workspace brand WeWork has acquired its Chinese rival, Naked Hub, in a deal reportedly worth $400m.
Naked Hub is part of Naked Group, a hospitality, design, technology, and lifestyle brand that was founded in China in 2007 by Grant Horsfield and Delphine Yip-Horsfield.
Naked Hub launched in 2015 and has 24 locations including Beijing, Shanghai as well as Hong Kong, Vietnam and Australia.
The deal will see WeWork combine its 13 locations across Greater China with Naked Hub to create a network of 40 locations by the end of the year. The brand claims it will have a combined community of 80,000 people, which it plans to grow to 1 million by the end of 2021.
WeWork CEO Adam Neumann confirmed the deal in a blog post where he said the move was part of the companies strategy to create a future-proof business.
“As we look to the future, we are examining more broadly the ways individuals interact and connect with one another beyond the confines of buildings to include cities as well. We are reimagining the way people work and live and looking toward creating an operating system for life.
“We need a fresh approach to how we think about space and how we utilize it as a force for good. Building community can have fundamental benefits for city populations, and its potential takes us well beyond walls and buildings.
“In naked Hub, we have found an equal who shares our thinking about the importance of space, community, design, culture, and technology. Together, I believe we will have a profound impact in helping businesses across China grow, scale, and succeed," said Neumann.