Here at 99spaces.co we’ve been talking for a while already about the growth and strength of the local Australian coworking scene.
Over the last few years the pace of new spaces opening has strengthened considerably and now barely a week passes without news of a launch; a new operator setting up shop, or a current player expanding their reach.
Because of this environment we feel that the industry is ripe for consolidation. There are definite synergies that in our opinion can be gained by spaces consolidating and strengthening their offerings.
This will only increase education and awareness about the coworking concept as a whole – a gain for the entire industry.
It was revealed this week that Melbourne-based tech incubator slash coworking space York Butter Factory has acquired fellow coworking space Teamsquare.
The buy, which will see YBF increase its footprint by more than five times and relocate from a former butter factory to a former wool warehouse, is the first significant action by the incubator’s newly installed CEO Farley Blackman.
Mr Blackman, who recently joined YBF, initiated and orchestrated the acquisition over his first several weeks at the organisation. According to Mr Blackman, the acquisition will help YBF move up the local innovation food chain
“I joined in mid-October and it was the first order of business for me. We have been working quietly since then to make it happen,” he said.
“The 3100sq m will help us attract a wider group of companies from start-ups to scale-ups.
“At YBF we do a lot more than co-working so this acquisition means we get to layer that on top of the community building that we do.”
The Teamsquare space houses a number of businesses over three floors, which will be absorbed into the broader YBF population.
Located at 520 Bourke Street, YBF’s new headquarters heralds greater changes with a broader rebranding under way in which the York Butter Factory name will be retired.
“We are now moving forward as YBF and will have more to announce in the new year,” Mr Blackman said.
Teamsquare co-founder and CEO Michael Shimmins said the deal was a big win for the local technology scene.
“When Farley Blackman approached us about acquiring Teamsquare to further YBF’s agenda, we were really excited about the prospect and knew it would be a multifaceted win,” he said.
“We’re thrilled that the acquisition went through, and know both YBF and Teamsquare’s customers will benefit from the combined strengths of both businesses and will be in good hands.”
Read more here.
We anticipate more spaces will take advantage of the environment and consider consolidating as a way to grow business in 2018.
The 99spaces team is planning to launch an acquisition team who will focus specifically on M&A services for industry players looking to merge, acquire, or divest business. Reach out to us at any time to learn more.
Looking forward to working together!