Regus Group Agrees to Acquire HQ Global Workplaces
CHERTSEY, England, July 16.
Regus Group plc, (LSE: RGU.L) the world's largest provider of outsourced offices, has entered into an agreement to acquire HQ Global Workplaces Inc., the United States' leading business centre operator, for up to US$302.5 million. With more than 650 business centers across 52 countries, the scale, coverage and breadth of product offering of its combined operations means that the Regus Group can now serve its customers across the world - in a way that is tailored to them and their business needs.
Existing Regus customers will now have access to hundreds of new locations across the United States. HQ customers will be able to access Regus' global network. Everywhere, customers can be assured of a friendly welcome, quality service, premier locations, consistent standards, best-of-breed IT - and responsive, flexible, cost-effective solutions to their office outsourcing and business service requirements. So, whether customers are looking to expand in Latin America, open a project office in Johannesburg or enter new markets in South-East Asia, Regus Group will be there to help. This deal has been driven by customer demand.
Over the past few years, there has been a significant growth in the number of companies choosing to outsource their office and business service needs, whether that be for short- or long-term office space, meeting rooms, or training and conference facilities. Many of the world's leading corporations - Nokia, AOL, GE, Accenture, McDonalds, Boeing, IBM - are choosing to outsource. Outsourcing their offices makes real financial and business sense for such multinationals. It offers value-for-money and substantial savings for medium-sized and small businesses too. So, while today's announcement reflects a major change in the way businesses are approaching their office and business service needs, it also means more choice for customers, the guarantee of great service, a trusted global platform and the assurance that customers can turn to Regus Group wherever they are in the world.
Commenting on the acquisition, Regus Group CEO Mark Dixon, said: "The US is a key market in our strategy to provide office outsourcing services on a global scale. Recent research from Corenet and Gallup has shown that by 2010 office outsourcing will be a major industry in its own right. We are at the forefront of that trend and we believe that the acquisition of HQ Global Workplaces is critical to our long-term success as the world's No 1 office outsourcing and business services provider".
Ed Casas, Chairman of the Board for HQ Global Workplaces Inc., commented: "Because of HQ's dominant position in the US market, we believe we complete the global picture for Regus. As these two companies team up, they create a powerful international resource for companies a leading player in the US and international commercial real estate market. We fought hard through the industry downturn and survived. We looked hard at redundancies, adjusted our operating model, eliminated costs and refinanced our balance sheet while staying passionately committed to providing the quality service that keeps customers loyal. We emerged healthy and energized, and are ready for new opportunities as part of the Regus Group."
The acquisition is expected to close in mid-August.
Regus Group plc is the global market leader in outsourced offices, meeting rooms, conference and training facilities, virtual offices and public access videoconferencing studios. The company, which operates 400 centres in 52 countries, serves some 60,000 business people on a daily basis. In the US, Regus also operates the Stratis brand. Regus was founded in Brussels, Belgium in 1989. It is listed on the London Stock Exchange and headquartered in Chertsey in England.
HQ Global Workplaces Inc. is the US's leading provider of full service office business centers. HQ offers a flexible and cost- effective alternative to traditional office leasing for companies of all sizes and for business professionals and start-up enterprises - smart solutions for the way professionals want to work anywhere, anytime. The company serves some 40,000 business people on a daily basis. HQ has a network of more than 300 business centers in the US and worldwide. These flexible office centers are conveniently located in premier downtown and suburban buildings.
FOR FURTHER INFORMATION For further information on Regus Group, contact: Shari Aponte on + 203.564.1514 or +914.473.5185; or at Shari.email@example.com SOURCE Regus Group plc -0- 07/16/2004
CONTACT: Shari Aponte of Regus Group plc, +1-203-564-1514 or +1-914-473-5185 or Shari.firstname.lastname@example.org
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