Mindbody, a digital wellness technology platform, announced it has entered into a definitive agreement to acquire ClassPass, a monthly subscription service app-based unlimited access to fitness and wellness classes across multiple gyms and studios.
The acquisition will be an all-stock deal at a non-disclosed price and will integrate both teams – with ClassPass continuing to operate its app and website.
ClassPass has raised over $500 million from investors, including L Catterton, Apax Digital, and Temasek.
“The ClassPass network includes many businesses already working with Mindbody. By combining our respective operations, we will create more seamless integrations and unlock new revenue opportunities for business owners using both services, while continuing to support all fitness, salon and spa businesses who choose to work with Mindbody or ClassPass,” said Fritz Lanman, ClassPass CEO. ”
For consumers using our marketplace and professionals enrolled in the ClassPass Corporate Program, our goal is to create greater choice and flexibility in the experiences they can book.”
For business owners, ClassPass offers data-driven, machine learning-based SmartTools that help studios manage excess inventory and market unsold spots at a revenue-maximizing price.
Mindbody’s intent to acquire ClassPass comes on the heels of recent research and data from both companies; nearly 80% of consumers feel wellness is more important than ever. Additionally, several markets that have fully reopened are seeing bookings on the Mindbody platform rebounding to pre-COVID levels, and ClassPass consumer usage is at 110% of pre-COVID usage for subscribers who have gone back to class.
“This acquisition comes at a pivotal time for the wellness industry as it continues to rebound from COVID-19 related closures – and local and authentic experiences are more important to people than ever,” said Josh McCarter, CEO of Mindbody.
“Our companies share a singular focus on bringing wellness experiences to more people, in more places. By leveraging the best of both companies’ technology and expertise, we are more committed than ever to providing studios with best-in-class tools to help them grow and thrive, while also driving more consumers to their businesses.”
In conjunction with the acquisition, Mindbody has secured a strategic investment of $500 million from a group led by Sixth Street, an investment firm.
One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020.