Attending a personal training session on recovery, Mindbody said it would buy ClassPass on a stock deal.
Mindbody is often described as something like the OpenTable of the fitness world: Gymnasiums and fitness studios use utilities to organize classes and orders. ClassPass, on the other hand, is used by consumers to sign up for subscription-based classes. Recently, ClassPass has expanded its work with beauty salons and other wellness providers.
Financial terms were not disclosed. However, Axios reports that Mindbody will have a 60% to 70% stake in the combined business. Before the pandemic, ClassPass was valued at more than $ 1 billion. In 2019, Mindbody was acquired by Vista Equity for $ 1.9 billion.
“The future is a hybrid,” ClassPass CEO Fritz Lanman said at the Squawk Box on Thursday. “Some people really want to be digital [workouts], some only want it personally, some want both. “
“The elegance of this collaboration is that ClassPass, like Mindbody, has a digital product solution for those who want it,” Lanman added. “But … consumers want to meet them in person, we know that.”
The merger will create a one-stop shopping experience from thousands of boutique studios and gyms across the country to improve the health of businesses and consumers.
Under this agreement, studios that did not use the pre-order program in ClassPass can now subscribe to Mindbody. And for Mindbody, its consumer-oriented business will have everything ClassPass has to offer.
Mindbody CEO Josh McCarter said the company’s next plans include investing in an international expansion and a strong corporate recovery proposal. Also on Wednesday, a global investment firm on Sixth Street said it had agreed to invest $ 500 million in the joint venture.
“This funding provides us with a good opportunity to consolidate in the industry, as well as invest in the production of our own products,” McCarter said.