ClassPass, recently valued at over $1 billion, has been acquired by Mindbody. Until recently, ClassPass was part of the Mindbody partner store, and positioned as “the world’s leading fitness and wellness network: with over 50,000 health and wellness partners around the world.
According to CEO Josh McCarter, the 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. 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, a leading global investment firm.
Mindbody’s intent to acquire ClassPass comes on the heels of recent research and data from both companies that proves consumers are getting back to in-person wellness experiences as studios reopen. Nearly eighty percent 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 one-hundred-and-ten percent of pre-COVID usage for subscribers who have gone back to class.
The TASBIA™ Bottom Line
With this acquisition, the combined new entity will have the opportunity for increased growth. For example, ClassPass studios that are not using any appointment scheduling or booking software will now have the chance to sign up with Mindbody. Similarly, Mindbody’s business will have the chance to sign up for a ClassPass subscription and get access to those studios. Gyms and studios that use Mindbody for ad hoc bookings could also be offered ClassPass as an option.
According to both companies, there will be no “forced migration for any business from one software platform to the other, and the same goes on the consumer-facing sides of the business.”
ClassPass claims it will maintain its brand, and ClassPass CEO Fritz Lanman told TechCrunch that there are no redundancies or layoffs planned. Time will tell, but if both companies can convince customers that they are “vendor neutral” and not trying to box out competitors, the strategy just might work.
For more information see the Press Release from Mindbody