Wellness business software producer Mindbody has agreed to acquire ClassPass, the US-based fitness services marketplace backed by internet and technology conglomerate Alphabet, in an all-share deal of undisclosed size.
ClassPass runs a subscription service where members can book fitness classes and beauty treatments at more than 40,000 partnered gyms, wellness providers and beauty centres.
The company also helps fitness studios to manage excess inventory and market unsold spots to optimise their revenue generation. Its team will be integrated with Mindbody’s but ClassPass will continue to operate its own app and website.
Fritz Lanman, CEO of ClassPass, will be appointed president of ClassPass and Mindbody Marketplace once the deal closes and will working alongside Mindbody CEO Josh McCarter. Mindbody has also secured $500m in funding for the merged entity in a round led by investment firm Sixth Street.
ClassPass raised $285m in a January 2020 series E round in that valued the business at $1bn, increasing its total funding to $540m. Private equity firm L Catterton co-led the round with Apax Digital, the technology fund launched by private equity firm Apax Partners, and it included Singaporean state-owned investment firm Temasek.
The company had previously received $85m in a 2018 series D round led by Temasek and backed by L Catterton through its Growth Fund.
GV, a corporate venturing subsidiary of Alphabet, invested in a $70m series C round for ClassPass in 2017 that was led by Temasek and which also featured brand development and investment firm M13, Acequia Capital, CRV, General Catalyst and Thrive Capital.
ClassPass had already secured $30m in a 2015 round backed by GV, after raising earlier funding from General Catalyst, Thrive Capital, SV Angel and various angel investors.