Charlotte-based coworking company Hygge has been acquired by COhatch, another coworking operator that started in Columbus, Ohio.
Terms of the deal were not disclosed.
Why it matters: The acquisition marks the latest chapter for one of Charlotte’s most well-known startups.
Hygge (pronounced hoo-ga) has grown since its 2015 inception, most recently last spring with the acquisition of another Charlotte coworking company, Advent.
- The Hygge and COhatch deal will enable the newly merged company to expand in markets like Charlotte, Raleigh and Atlanta, according to a statement from the two companies.
- COhatch has locations across the Midwest — in markets like Indianapolis, Cleveland and Cincinnati — as well as in Tampa Bay, per its website.
“I’ve wanted to be multi-market for so long and just couldn’t figure it out,” Hygge owner Garrett Tichy tells Axios.
Zoom out: Hygge has about 980 members. The company operates five locations in Charlotte, including a former Advent location on Louise Avenue that rebranded as Hygge last year.
The big picture: The pandemic was “brutal” for the coworking industry at first, Tichy says. Stay-at-home orders ushered in a wave of employees working from their dining room tables and home offices. Hygge signed a lease for a 20,000 square-foot space on March 1, 2020 that it never opened, Tichy says.
- The return to in-person work has provided a boost to coworking operators, especially for employers who don’t want to commit to a long-term lease for an office, he adds.
- Large companies sometimes offer stipends for coworking. And in Charlotte, companies like Charlotte magazine and QC Metro have both been working from Hygge spaces.
What they’re saying: “We see Hygge as an opportunity to align with local people who share the same goals and vision for growing a community that stays true to the city and neighborhoods we’re in,” Matt Davis, co-founder and CEO of COhatch, said in the statement.
What’s next: Hygge locations will continue to operate as they have been (including under their own brand).
- Hygge members will receive access to all COhatch locations and amenities, including COhatch+, the company’s digital platform. They’ll also get access to Impact Scholarships that allow local startups and nonprofits to apply for free access to COhatch and Hygge spaces.
- There will be some cosmetic renovations to Hygge locations as part of the deal. But, “the personality of all locations will stay distinctively Hygge,” according to the company.
- COhatch will add up to 10 sites in Charlotte.
- Tichy will become a part of COhatch’s national expansion leadership team. He’ll focus on the company’s North Carolina and Georgia markets.