- ClassPass announced Wednesday that it has been bought by Mindbody in an all-stock deal.
- This move is, in part, a major bet that people are going to return to in-person workout classes.
- The merger will create a one-stop shopping experience for both businesses and consumers to fine-tune their fitness.
Along with attendance at in-person fitness classes on Rebound, Mindbody said it will acquire ClassPass in an all-stock deal.
mind Body Often described as something akin to the OpenTable of the fitness world: Gyms and fitness studios use their backend software to help organize classes and bookings. classpassOn the other hand, it is used by consumers to sign up for workout classes on a subscription basis. Recently, ClassPass has expanded to work with beauty salons and other wellness providers.
Financial terms were not disclosed. However, Axios told That Mindbody will have a 60% to 70% stake in the combined business. Before the pandemic, ClassPass was valued at more than $1 billion. Whereas in 2019, Mindbody was taken private by Vista Equity in a $1.9 billion purchase.
“The future is hybrid,” ClassPass CEO Fritz Lanmann said Thursday on CNBC’s “Squawk Box.” “There are some people who really want digital [workouts], some want only individually, and there are others who want both.”
“The grandeur of this partnership is ClassPass has a digital product solution for those who want it, as does MindBody,” Lanman said. “But … consumers are personally eager to come back, we know that.”
The merger will create a one-stop shopping experience of sorts for both businesses and consumers from thousands of boutique studios and gyms across the country to get their fitness fix.
As part of the deal, studios on ClassPass that weren’t previously using the booking software can now sign up with MindBody. And as for MindBody, its consumer-facing business will have access to everything ClassPass offers.
According to Mindbody CEO Josh McCarter, the company’s next plans include expanding internationally and investing in a strong corporate wellness offering. Also on Wednesday, global investment firm Sixth Street said it has agreed to invest $500 million in the merged business.
“This financing really puts us in a good position to do some consolidation in the industry as well as invest in our own product development,” McCarter said.