Industrious Acquisition to Form CBRE's New Business Segment
Deal News | Jan 14, 2025 | CBRE Group Inc
CBRE Group, Inc., the world's largest commercial real estate services and investment firm, has announced a definitive agreement to acquire Industrious National Management Company, LLC, a leading provider of flexible workplace solutions, for $400 million. The acquisition will create a new business segment named Building Operations & Experience (BOE), integrating building operations, workplace experience, and property management to offer scalable global solutions. This move follows CBRE's prior investment in Industrious, holding a 40% equity interest and a $100 million convertible note. The merger reflects an enterprise valuation of $800 million for Industrious, and is expected to enhance CBRE's 2025 core EBITDA and free cash flow. Jamie Hodari, CEO and co-founder of Industrious, will lead the new BOE segment while Vikram Kohli, CBRE's COO, has been promoted to CEO of Advisory Services. This strategic acquisition underlines CBRE's focus on resilient businesses and the rising demand for flexible workplace solutions.
Sectors
- Commercial Real Estate
- Flexible Workspace Solutions
- Building Operations and Facilities Management
Geography
- United States – CBRE Group and Industrious are both headquartered in the United States, and the acquisition announcement is significant for the U.S. real estate market.
- Global – CBRE operates globally in over 100 countries, and the acquisition of Industrious impacts its international operations.
Industry
- Commercial Real Estate – The acquisition of Industrious by CBRE reflects significant activity in the commercial real estate sector, focusing on workspace solutions.
- Flexible Workspace Solutions – Industrious' business model emphasizes flexible workplace solutions, aligning with the growing demand for such services.
- Building Operations and Facilities Management – The formation of the Building Operations & Experience segment underlines CBRE's expansion into comprehensive facilities management services.
Financials
- $400 million – The cost of acquiring the remaining equity stake in Industrious.
- $800 million – The implied enterprise valuation of Industrious based on the acquisition.
- 40% – The equity interest CBRE previously held in Industrious prior to the acquisition.
- $100 million – The value of the convertible note CBRE had invested in Industrious.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CBRE Group, Inc. | Acquiring Company | Company | A Fortune 500, S&P 500 company and the world's largest commercial real estate services firm based on 2023 revenue. |
| Industrious National Management Company, LLC | Target Company | Company | A leading provider of flexible workplace solutions, known for its asset-light business model and rapid revenue growth. |
| Jamie Hodari | CEO, BOE & Chief Commercial Officer | Person | CEO and co-founder of Industrious, set to lead CBRE’s new Building Operations & Experience segment. |
| Vikram Kohli | CEO, Advisory Services | Person | Chief Operating Officer of CBRE, promoted to CEO of Advisory Services, focusing on strategy and growth. |
| Bob Sulentic | Chair and CEO of CBRE | Person | Oversees CBRE's strategic vision and major acquisitions. |