China’s co-working market has well passed its initial growth stage and is shifting quickly to maturity. The completion of this transition is marked today by the largest merger ever in China’s co-working field between two top players in the market. China’s co-working unicorn URWork inked an agreement with another rival New Space for a strategic merger, the latter announced today.

The market valuation of the merged entity would hit an impressive RMB 9 billion (US$1.31 billion), the firm disclosed. Beijing-headquartered URWork has raised to unicorn status in January this year after pocketing an RMB 400 million worth of round, the largest capital injection in the vertical so far. Given URWork’s latest round booked a valuation of RMB 7 billion, it puts New Space’s valuation at roughly around RMB 2 billion. A new name for the company has not been mentioned.

Mao Daqing, CEO of URWork, was announced to take the post of board chairman and to co-CEO the new entity with Wang Shengjiang, CEO of New Space, after the merger. The two companies will maintain their independent status with team structures unchanged. The tie-up mainly lies in the sharing of resources.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.