WeWork acquires $249 million office services startup Managed by Q as it goes after larger business customers

Managed By Q

• WeWork has acquired Managed by Q, a platform for office tenants to hire on-demand service workers like cleaners, receptionists or IT support.
• Managed by Q was most recently valued at $249 million in a financing round in January, according to PitchBook. The company had raised $85 million since 2014 from GV, Homebrew and RRE Ventures.
• Managed by Q Cofounder and CEO Dan Teran will stay on to lead Managed by Q as a separate entity under WeWork.

In yet another effort to expand beyond its office leasing business, WeWork announced today that it acquired Managed by Q - a platform that allows office tenants to hire service workers such as cleaners, receptionists or IT support.

Financial terms weren't disclosed. Managed by Q was most recently valued at $249 million in a financing round in January, according to PitchBook Data. The company had raised $85 million since 2014 from GV, Homebrew and RRE Ventures.

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In a blog post announcing the news, Managed by Q Cofounder and CEO Dan Teran expressed his support, and emphasizes that "the decision to join WeWork and forgo an independent path was not taken lightly."

The acquisition is another way WeWork is hoping to expand beyond leasing office space to smaller tenants. Managed by Q works mainly with medium and larger-size companies - a customer segment WeWork has been hustling to break into. WeWork, most recently valued at $47 billion, has made several acquisitions over the last year to continue adding services to support its primary customers. In September, WeWork acquired Teem, a meetings management platform, followed by Euclid, a WiFi data usage analytics platform, in February.

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Teran will stay on and manage the team as a separate entity under WeWork.

"I believe that WeWork has the potential to be one of the most important companies in the history of the world, and I am excited to dedicate the next chapter of my career to making it so," Teran said in the blog post.

Managed by Q had an existing partnership with WeWork where its services were available to customers of its Headquarters by WeWork offering. Headquarters by WeWork offers tenants a fully branded, private office space managed by WeWork.

Managed by Q will not be rolled out at all WeWork locations, according to a report in The Wall Street Journal, and Managed by Q will continue to serve non-WeWork clients.