Chinese co-working space provider Ucommune has entered into a merger agreement with New York-based acquisition company Orisun Acquisition Corp., according to Orisun’s press release on Monday. The newly-merged company is expected to trade on the NASDAQ under a new ticker symbol.
According to the statement, Orisun will merge with Ucommune International, a Cayman Islands exempted company and the wholly owned subsidiary of Orisun. The combined public entity will equate to a valuation of approximately $769 million upon the closing of the transactions.
“We are thrilled to enter into the Merger Agreement with Orisun,” Daqing Mao, founder of Ucommune said. “This transaction directly aligns with our strategic objectives, and will unleash the exciting potential of our new growth initiatives, including the expansion of our asset-light model.”
Founded in 2015, Ucommune has become one of the largest co-working community operators in China, whose existing investors include Sequoia Capital China, Matrix Partners China, Sinovation Ventures, ZhenFund, and Gopher Asset Management. With more than 700,000 members across more than 200 offices in China and Singapore, the company submitted the preliminary filing with the U.S. securities regulator for initial public offering last December.
Ucommune generated revenues of RMB 1.18 billion ($170 million) in 2019, a 160% increase from a year ago. However, it also posted a net loss of 572.8 million yuan ($81.38 million) between Q1 and Q3 of 2019, compared with a revenue of 874.6 million yuan in the same period.
Ucommune’s current management team will continue running the company after they complete the transaction, according to the press release.