China’s Ucommune acquired by US-listed SPAC Orisun

Photo: Ucommune

Ucommune, China’s biggest shared workspace provider, has been acquired by Orisun Acquisition Corp, a Nasdaq-listed US blank check firm formed for the purpose of entering into a merger, asset acquisition, or similar business combination, according to an announcement.

According to the terms of the deal, Orisun’s wholly-owned subsidiary Ucommune International will acquire Ucommune, resulting in a combined company that will have a pro forma firm value of approximately $769 million.

The merger comes as Ucommune failed to launch its initial public offering (IPO) last year after Citigroup Inc and Credit Suisse Group reportedly walked away from underwriting it due to alleged unrealistic IPO valuation.

Ucommune claimed a valuation of $3 billion after the completion of a $200-million Series D round in November 2018 – a significant jump from its previous round three months earlier that had valued the firm at $1.8 billion. The firm was founded in 2015, with early investors including Sequoia Capital China, Matrix Partners China, Sinovation Ventures, and Zhenfund.

The terms of the agreement also showed that Ucommune International will become a listed company on the Nasdaq Capital Market following the acquisition, with Ucommune’s shareholders and management receiving 70 million ordinary shares of Ucommune International.

Additionally, Ucommune shareholders are also entitled to receive earn-out consideration of up to an additional 4 million ordinary shares of Ucommune International, subject to certain conditions.

Ucommune’s founder Daqing Mao said the firm will continue to strengthen its market position and further expand its footprint in China.

“This transaction directly aligns with our strategic objectives and will unleash the exciting potential of our new growth initiatives, including the expansion of our asset-light model,” Mao added.

The firm currently has more than 700,000 members and more than 94,000 work stations across 211 office spaces in Greater China and Singapore, with an aggregate managed area of 686,000 sq m as of December 2019.

Ucommune generated revenues of 1,179 million yuan (approximately $170 million) in 2019 (unaudited), and revenues grew over 160 per cent from 2018 to 2019. The company’s management estimates revenues of 1,350 million yuan ($190 million) and 2.1 billion yuan ($295 million) in 2021 and 2022 respectively.

Ucommune’s current management team will continue running the company after the transaction with Orisun.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.