Newable acquires flexible office provider Citibase in landmark deal to support SMEs
22nd November 2018
Newable, the provider of finance, business advice and premises, has acquired flexible office pioneer Citibase in a significant deal which will help to supercharge the growth of British businesses. The deal will combine Citibase’s unique affordable serviced office solution with the suite of additional services that Newable currently offers to create a ‘one stop shop’ for SMEs.
Citibase, which will continue to trade under its own name, specialises in transforming and managing buildings as thriving profit-generating assets on behalf of landlords and building owners. It currently manages 40 offices from Aberdeen to Brighton, including ten in London, generating circa £20m of revenue. Prior to the deal, Citibase and Newable were already partnering on an office in London Tower Bridge.
Steve Jude, Chief Executive Officer of Citibase, comments: “This deal represents a shared vision to unleash the potential of Britain’s businesses. The world of work has changed forever, with businesses shunning traditional long lease offices in favour of agile and flexible spaces that allow them to flourish.
“The flexible office sector is expected to grow by 30% every year over the next five years according to a recent JLL report – and while there have been many new entrants offering spaces and amenities, we see access to funding and business building advice as equally important tools for success. With the backing of Newable and its additional product offering, we will be able to provide an unrivalled nationwide growth proposition for the UK’s 5.7m SMEs, who collectively form the beating heart of the economy.”
Chris Manson, Chief Executive Officer of Newable, comments: “Citibase is a highly successful business and represents a ready-made platform that can be scaled. We have always viewed Citibase’s management and profit share model for flexible offices as the future. This, combined with Newable’s services and network, makes for a highly compelling offer for both existing and potential new customers.”
Steve Jude will continue to lead Citibase and will also join Newable’s Leadership Team, led by Chris Manson. There will be no redundancies, with Newable’s immediate priority being to support and accelerate the growth trajectory that Citibase is already on, providing additional services to existing customers and aiming to more than double the number of offices under management to over 100.
Citibase’s headquarters will remain in Birmingham, supported by Newable’s four offices in London and the South East. The acquisition forms part of a wider growth strategy for Newable, which is aiming to treble in size within five years.