Equinox Group in Talks to Go Public; ClassPass and Mindbody Potential Merger; Will New Yorkers go Back to the Gym…Ever?
Athletech News was created with one goal, to apprise our readers with relevant content that will help inform their business decisions. We strive to aggregate the latest trends and happenings on all things fitness related. Below is what our team at Athletech flagged as this week’s most interesting reads in the world of fitness, tech and mental health.
Equinox Group is in Talks to go Public via Chamath Palihapitiya-backed SPAC, Sources Say
Finance | CNBC | May 5, 2021
Athletech’s Take:
With a valuation of more than $7 billion, Equinox is in talks to go public via a merger with a SPAC backed by Chamath Palihapitiya. The fitness company, which also owns SoulCycle and Blink Fitness, has been hit hard by the pandemic. Equinox has been forced to close numerous locations because of the pandemic. The company reported a loss of $350 million on $650 million in revenue in 2020. Whether the deal goes through is up for speculation but there are definitely eyes on this possible mega deal.
ClassPass and Vista-Backed Mindbody Hold Merger Talks
Finance | Bloomberg | May 4, 2021
Athletech’s Take:
In more business news, ClassPass and Mindbody Inc., two large providers of technology to fitness companies across the globe, have held initial conversations about a possible merger. The pandemic hurt fitness companies that both ClassPass and Mindbody count on as customers, with many forced to shutter and some moved into bankruptcy. In response to the pandemic, ClassPass made the strategic move to pivot to digital classes and then added a vaccine center locator to its platform.
Will New York’s Fitness Scene Stay Home?
Fitness | Bloomberg | May 5, 2021
Athletech’s Take:
The million dollar question for the fitness industry is on full display in New York. Will fitness devotees return to their pre-pandemic habits of hitting the gyms and fitness studios which were key components of their everyday lives? CycleBar President Trevor Lucas thinks they will return – in a recent Business Insider article he claims that approximately 90% of its pre-pandemic membership base is back. With New York State removing capacity limits for businesses such as stores, restaurants and fitness centers beginning May 19, whether people go back to “lugging their yoga mats around the city” may very much depend on if they will be ‘forced’ back into their offices and/or whether they’ve already shelled out $2,000 for a Peloton…
Are We Seeing a Slowdown in Health and Fitness Products?
Finance | Adweek | May 4, 2021
Athletech’s Take:
Sales for health and fitness products hit new levels during the pandemic. It was not uncommon to encounter delivery delays, eagerly waiting for home fitness products from fitness bikes to free weights to arrive. That said, some areas where there was accelerated growth such as online bikes (which doubled year over year from 2019 to 2020) have started to cool off. In addition the search keyword popularity for health and fitness products like weights, yoga mats, resistance bands and other fitness products has tapered. Regardless, with the global demand for health and wellness expected to hit nearly $7 trillion in 2024, it is without a doubt that the industry is still prime for expansion.