SPAC BowX Agrees to Merger With WeWork

Transaction values leading flexible space provider WeWork at approximately $9 billion

New York – March 26, 2021 – Cooley advised BowX Acquisition Corp., a publicly traded special purpose acquisition company or SPAC, on its agreement to merge with WeWork – a combination that will result in WeWork becoming a publicly listed company. Lawyers Dave Peinsipp, Jamie Leigh, Kevin Cooper, Garth Osterman, Eric Blanchard, Richard Segal, Sangitha Palaniappa and Natasha Patel led the team advising BowX on the transaction, which is expected to close in Q3.

The transaction, which values WeWork at an initial enterprise value of approximately $9 billion, will provide WeWork with approximately $1.3 billion of cash to continue self-funding its growth into the future. The deal will be funded with BowX’s $483 million of cash in trust, in addition to a fully committed $800 million PIPE led by investors including Insight Partners, Fidelity Management & Research Company, Centaurus Capital, funds managed by Starwood Capital, and funds and accounts managed by BlackRock. 

“This company is primed to achieve profitability in the short term, but the added long-term opportunity for growth and innovation is what made WeWork a perfect fit for BowX,” Vivek Ranadivé, chairman and co-CEO of BowX, said in a news release. “With a fantastic core business, I see WeWork as a company at an inflection point, with an incredible roster of key members coupled with the vision and leadership to digitize an enormous industry.”

WeWork Executive Chairman Marcelo Claure and CEO Sandeep Mathrani will continue to lead the company in their current roles. Following the closing, Ranadivé and Insight Partners’ Deven Parekh will join the company’s board of directors.

Founded in 2010, WeWork has continued to redefine the flexible workplace market by digitizing its global physical network. As traditional landlords look to embrace the flexible model that WeWork pioneered and the market demands, WeWork will be well positioned to offer landlords an asset-light technology platform for managing and orchestrating flexible space. WeWork intends to expand beyond its core business, enabling users to choose from their WeWork mobile app when, where, and how they work. 

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Related Contacts
David Peinsipp  Partner San Francisco, Palo Alto
Jamie Leigh  Partner San Francisco
Kevin Cooper  Partner New York
Garth Angelo Osterman  Partner San Francisco
Eric Blanchard  Partner New York
Richard Segal  Partner New York
Sangitha Palaniappa  Associate Palo Alto
Natasha Patel  Associate New York
Anna Anderson  Paralegal Specialist London
Rachel Boyce  Associate San Francisco
Julia R. Brinton  Associate Washington, DC
Jacquelyn Burke  Special Counsel Boston
Caitlin Courtney  Associate Palo Alto
David Crawford  Special Counsel San Diego
Ross Eberly  Partner Los Angeles
Joshua Elefant  Associate Palo Alto
Joshua Friedman  Partner Boston
TJ Graham  Partner Palo Alto
Stephanie Gentile  Partner New York
Patrick Gibbs  Partner Palo Alto
Daniel Han  Associate New York
Kelsie Leigh Harris  Associate New York
Christopher Hutter  Partner Reston
Kristopher Kleiner  Associate Colorado
Christopher Kimball  Partner Washington, DC
Kevin King  Partner Washington, DC
Drue Anne Koons  Paralegal Specialist San Diego
Allison Kutner  Associate New York
Daniel Lac  Associate San Diego
Samantha LaPine  Partner San Diego, San Francisco
Calvin Lee  Associate New York
Evan Leitner  Associate Boston
Sarah Lightdale  Partner New York
Douglas Lyles  Senior Research Services & Access Analyst
Shannon MacMichael  Special Counsel Washington, DC
Eileen Marshall  Partner Washington, DC, Palo Alto
Howard Morse  Partner Washington, DC
Margie Murphy  Paralegal Specialist New York
Pat O'Connell  Associate New York
Sarah Oliai  Associate Washington, DC
Liz Paisner  Associate Palo Alto
Amis Pan  Associate Palo Alto
Anne Peck  Partner Palo Alto, San Diego
Kevin Rivers  Associate Palo Alto
Stella Sarma  Special Counsel Brussels, London
Patrick Sharma  Associate Los Angeles
Elizabeth Skey  Associate Palo Alto
Leo Spicer-Phelps  Associate London
Patrick M. Stewart  Associate Colorado
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Drew Williamson  Partner San Francisco
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