Eileen Wee, the marketing communications manager of JustCo, told DEALSTREETASIA that the conditional merger between the two co-working space operators, announced in July 2017, did not materialize eventually.
“In the course of due diligence that was carried out in the past months, we realized there were expectations unaligned in key aspects of the conditional merger, hence in the best interest of both parties, the conditional merger did not proceed,” Wee said.
The two co-working space operators earlier announced plans to merge to compete with industry leader WeWork, whose operational footprint in Asia extends to China, Hong Kong, and India.
naked Hub currently has 44 hubs open or in the pipeline across the world in Mainland China, Hong Kong, Vietnam, Australia, and the UK. It aims to operate 194 co-working spaces by 2020. In October 2017, the company announced plans to go public in Hong Kong this year after a fresh round of fundraising.
Last week, China Money Network reported that naked Hub was planning to acquire Australia’s premium co-working space provider Gravity Coworking as part of its efforts to expand its presence globally.
A spokesperson for naked Hub, however, told DEALSTREETASIA that the deal has not been officially signed yet and is expected to be inked this week.
JustCo, meanwhile, secured $12 million in a Series B round from Thailand’s listed property developer Sansiri Plc last October 2017.
JustCo currently operates four locations in Singapore with a total space of 180,000 square feet. Following the funding, it will accelerate its expansion into Bangkok, Ho Chi Minh City, Jakarta, Kuala Lumpur and Manila, with a target to have a total of 30 co-working spaces covering one million square feet by next year.