The cloud-based software-as-a-service business management technology platform Mindbody serves the fitness, wellness, and beauty industries worldwide. Its app helps users to discover and book fitness, beauty and integrative health services. On the other hand, ClassPass is a monthly subscription service providing access to one of the world’s most extensive networks of fitness and wellness experiences.
This deal will bring two prominent members of the fitness and wellness industry together, creating a one-stop shop for both business owners and consumers. However, according to the CEOs of both companies, clients of Mindbody will not be required to use ClassPass and, at the same time, ClassPass clients will be free to use the booking system of their choice.
Prior investments into MindBody came from Airbnb, Datavant, Legends, MDLive, the San Antonio Spurs, Spotify and Sprinklr. In conjunction with the acquisition, the technology platform has now secured a strategic investment of USD 500 million (EUR 431 million) from a group led by global investment firm Sixth Street. Together with the continued support of Mindbody's majority investor and partner, Vista Equity Partners, this investment shall help to further accelerate the company's growth and build upon the product innovations and investments that have been made over the course of the pandemic. Major milestones have included the creation of a fully integrated virtual platform that set business owners up for success in a hybrid world, enhancements to Mindbody's marketing automation tools to improve client acquisition and retention, and the introduction of Mindbody Capital, a product that will give small business owners access to financing to help them invest in and grow their business.
“Our companies share a singular focus on bringing wellness experiences to more people, in more places”, underlines Josh McCarter, CEO of Mindbody. “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.”
The transaction will take place as an all-stock deal at a non-disclosed price. It will integrate both teams and ClassPass will continue to operate its app and website. After the closing of the deal, ClassPass CEO Fritz Lanman will serve as President of ClassPass and Mindbody Marketplace, working alongside Mindbody CEO Josh McCarter and his executive team.
“Since the founding of ClassPass, our north star has always been how we can help people discover and seamlessly book soul-nurturing experiences,” said ClassPass founder Payal Kadakia. “This acquisition will be a massive milestone for a female-founded company, and I am confident in the leadership of Josh McCarter and my long-time business partner Fritz Lanman to propel the business forward and continue to deliver a best-in-class experience for consumers and business owners alike.”
“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.
“As a customer and user of both Mindbody and ClassPass for several years, I know how impactful the combination of these two powerhouses will be on the industry as it regains momentum,” comments Bryan Myers, President and CEO of [solidcore] boutique fitness.
Source: Mindbody, ClassPass
Image: ClassPass, Mindbody