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The Houston-based facility management software company had been in talks with Teem, which makes software to book meeting rooms. The two companies had some integrated solutions together before iOffice was bought by private equity firm Waud Capital Partners in 2018, iOffice CEO Mark Peterson said in an interview with Crunchbase News.
Teem was acquired by WeWork in September 2018 for $100 million, according to Crunchbase.
After Teem was acquired, those talks died down, Peterson said. Still, Teem remained on Peterson’s list of potential buys after he became CEO of iOffice in October 2018–though it was unrealistic, given Teem’s recent acquisition by WeWork.
But after WeWork’s IPO flop in the fall, the real estate startup announced plans to divest acquired companies that weren’t part of WeWork’s “core business.” Teem was on that list, which included Managed by Q and Meetup.
iOffice jumped on the deal and was in contact with WeWork within hours, Peterson said.
Because iOffice makes using corporate office space easier, and its software can track seating assignments and locate rooms and tools in a building, it makes Teem an attractive acquisition with its reservation, visitor management and space usage software.
“Bringing what Teem has done with what iOffice has really gives both companies a boost,” Peterson said.
Teem raised about $23 million in funding before being acquired by WeWork, and its investors included Greycroft and NGP Capital.
About 85 Teem employees will be part of the acquisition, bringing iOffice’s headcount to a little over 250 people, Peterson said. Teem’s office in Utah will become a location for iOffice.
“This is going to be a really significant benefit to Teem customers as well as to iOffice customers,” Peterson said. “Because the combination of solutions will make some great technical capabilities.”
Illustration Credit: Li-Anne Dias