07 May 2021
Are ClassPass and Mindbody in merger talks?
BY Tom Walker
There are growing rumours that fitness subscription platform ClassPass and Mindbody, a cloud-based wellness platform, are in talks regarding a possible merger.
The two US-based fitness tech firms have had to adjust their business models during the pandemic, as both provide services to health club and studio operators – a sector which has been hit badly by lockdowns.
ClassPass offers gym-goers the ability to book workouts at facilities, while Mindbody provides a range of software and tech solutions used by clubs and gyms.
Among the adaptations made by ClassPass during the pandemic include the company adding US vaccine centres to its platform. It also began offering its partners the opportunity to live-stream classes through its app and website.
Mindbody and ClassPass didn’t immediately respond to requests by HCM for comment.
Mindbody was co-founded by wellness entrepreneur Rick Stollmeyer, who steered Mindbody to make it to the “Inc. 5000” list of the fastest-growing private companies for seven years in a row (from 2008 to 2014).
The firm went public in 2015, with an IPO raising US$100m. In 2019, Vista Equity Partners, a private equity firm, acquired Mindbody for US$1.9bn.
After stepping away from running Mindbody’s day-to-day activities in 2020, Stollmeyer penned a new book named Building a Wellness Business That Lasts to inspire wellness entrepreneurs to maximise opportunities in the “fourth wave of wellness.”
In January 2020 – shortly before the pandemic hit – ClassPass secured US$285m a Series E investment package led by L Catterton and Apax Digital, with additional participation by existing investor Temasek.
The funding resulted in the firm being valued at around US$1bn.
At the time, ClassPass said the investment would enable it to "rapidly scale" its proprietary reservation and booking technology.
Launched in 2013, ClassPass has made a name for itself by helping boutique studios and gyms fill empty slots in classes and currently partners with more than 30,000 boutique studios, gyms and wellness providers.
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