CBRE Group Inc. (NYSE: CBRE) has announced is acquisition of Industrious National Management Company LLC, a provider of flexible workplace solutions.
CBRE previously invested in Industrious through an approximately 40% equity interest and a $100 million convertible note. The company will acquire the remaining equity stake for approximately $400 million, reflecting an implied enterprise valuation of approximately $800 million.
In conjunction with the acquisition, CBRE will create a new business segment called Building Operations & Experience (BOE) that will unify building operations, workplace experience and property management. The new BOE segment will be led by Jamie Hodari, Industrious’ CEO and co-founder, and will consist of CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management and Industrious.
Hodari will also act as CBRE’s chief commercial officer, with responsibility for marketing and branding activities across all CBRE businesses.
“The global economy needs physical spaces to make it hum — safe and efficient logistics centers for our goods, magnetic offices for our teams and secure and resilient data centers for our information. Running these spaces with excellence requires sophistication at scale,” said Hodari. “I have found CBRE to be second-to-none in this respect, and I’m thrilled to be joining — not just because of how great it already is, but because of the opportunity ahead of us. I believe the new Building Operations & Experience segment will transform how buildings are operated, creating immense value for building users and owners.”
