New State Capital Acquires Vast Coworking in Flexible Workspace Boom

JUPITER, Fla. – March 09, 2026 – In a significant move that underscores the robust investor appetite for the flexible workspace sector, middle-market private equity firm New State Capital Partners has acquired Vast Coworking Group from the franchising conglomerate United Franchise Group (UFG). The transaction, for which financial terms were not disclosed, transfers ownership of one of the world's largest franchised coworking platforms to a new partner poised to fuel its next wave of expansion. The deal was exclusively advised by boutique investment bank Boxwood Partners.

Vast Coworking Group, headquartered in West Palm Beach, Florida, operates a formidable portfolio of flexible office brands, including the well-known Venture X, Office Evolution, and Intelligent Office. This acquisition marks a pivotal moment for the company and the broader coworking industry, reflecting a strategic bet on the continued growth of hybrid work models and the scalability of asset-light franchise systems.

A Strategic Play in the Hybrid Work Revolution

The acquisition arrives as the global flexible office market is experiencing unprecedented growth. Accelerated by the permanent shift toward hybrid and remote work following the pandemic, the market is projected to swell from approximately $22 billion in 2024 to over $82 billion by 2034, expanding at a compound annual growth rate of over 14%. Companies of all sizes, from solo entrepreneurs to large enterprises, are increasingly abandoning traditional long-term leases in favor of more agile, cost-effective workspace solutions.

Vast Coworking Group is uniquely positioned to capitalize on this trend. Its asset-light franchise model allows for rapid expansion with lower capital expenditure compared to company-owned models. This structure empowers local franchise owners to cultivate community-focused spaces while benefiting from the national brand recognition and operational support of a larger platform. The company's diverse brand portfolio—including Office Evolution, known as a large locally owned and operated workspace provider, and Intelligent Office, which offers virtual administrative services—allows it to serve a wide spectrum of clients.

Industry data reveals that corporate adoption is a major growth driver, with nearly 60% of companies planning workspace expansion now preferring flexible options. Furthermore, the trend is not confined to major urban centers. Suburban coworking expansion has significantly outpaced urban growth, a market dynamic that Vast's geographically diverse network is well-suited to serve.

The M&A Playbook for Franchise Growth

This transaction serves as a textbook example of the modern M&A playbook in the franchising world, where specialized advisors connect growth-ready platforms with capital-rich partners. Boxwood Partners, which specializes in founder- and family-led businesses, orchestrated the deal, leveraging its deep expertise in the franchise ecosystem.

"Working with the Boxwood team was a fantastic experience from start to finish," said Ray Titus, CEO of United Franchise Group. "Their deep understanding of franchise systems and founder-led businesses, combined with a disciplined process and strong relationships in the private equity community, helped us achieve a great outcome for Vast and position the business for continued success."

The deal team at Boxwood Partners, led by Managing Directors Robbie Nickle and Brian Alas, identified New State Capital Partners as an ideal suitor. New State has a stated focus on partnering with founder-led companies and executing complex carve-outs, making it a perfect match for taking over a division from a larger conglomerate like UFG.

"Vast has built a differentiated platform in the flexible workspace sector with a highly scalable franchise model, and we believe New State is an excellent partner to support the company's next phase of growth," stated Robbie Nickle, Managing Director at Boxwood Partners.

For New State, the acquisition provides a robust entry into a high-growth market. The firm plans to inject capital to support Vast's continued franchise network expansion, develop its brand platform, and capitalize on the long-term demand for flexible work solutions.

"We are excited to partner with New State Capital Partners as we enter this next chapter," said Jason Anderson, President of Vast Coworking Group. "New State brings significant experience supporting founder-led platforms and will be a tremendous partner as we continue expanding our brands, supporting our franchisees, and capitalizing on the growing demand for flexible workspace solutions."

A Calculated Divestment for United Franchise Group

For United Franchise Group, the sale represents a strategic portfolio optimization rather than a retreat. As a global franchising powerhouse with nearly 40 years of experience and over 1,800 franchises in its network, UFG is constantly evaluating its brand portfolio to ensure maximum focus and growth. The divestment of Vast Coworking Group aligns with a recent executive realignment at UFG designed to sharpen its focus on operational excellence and global expansion across its other brands.

By divesting Vast, UFG allows the coworking platform to thrive under a new, dedicated ownership structure focused squarely on the nuances of the real estate and flexible work industries. Simultaneously, the move frees up UFG's leadership and resources to double down on its core franchise concepts. This strategic decision showcases a sophisticated approach to portfolio management, ensuring that each brand within the UFG ecosystem has the right structure and support system for its specific market and growth stage.

The transaction is a testament to the value UFG built within Vast and its ability to incubate and grow a market-leading platform. Now, with the backing of New State Capital Partners, Vast is set to build on that foundation, leveraging fresh investment and a singular focus to further penetrate the burgeoning flexible workspace market and support its growing network of franchisees worldwide.