Interactive Strength Inc. To Acquire UK’s Wattbike
Athletech News spoke with Interactive Strength CEO Trent Ward and Wattbike CEO Stephen Loftus to unpack the strategy behind the acquisition and learn what’s next
Interactive Strength (TRNR), the parent company of Clmbr, smart fitness mirror Forme and Forme Golf, is acquiring U.K.’s Wattbike in a deal aimed at making the indoor cycling brand a household name in the U.S., advancing its training app and fueling its own Clmbr and Forme in the U.K.
The deal is expected to close as early as the second quarter and follows Interactive Strength’s recent move to acquire German-connected fitness and equipment company Sportstech, known for products like the sBike Lite, sWalk Treadmill and sTread Fold.
An exact figure for the Wattbike deal has not yet been disclosed publicly, but Interactive Strength CEO Trent Ward tells Athletech News that the earnings multiple is expected to be in line with other industry transactions, and there is “significant alignment” with the selling shareholders, given they rolled all of their equity into TRNR’s equity with a lock-up.
The valuation, he adds, is tied to performance, with up to 60% of the consideration contingent upon achieving projections.
The announcement comes on the heels of last month’s teaser from Interactive Strength, which disclosed it had signed a non-binding letter of intent and exclusivity agreement to acquire a then-unnamed connected fitness and equipment company with 2024 revenue topping $15 million. Interactive Strength also provided another clue to the mystery company, sharing in a March 6 letter to shareholders that it had discovered and first started speaking with the acquisition target’s CEO at last year’s HFA Show (then IHRSA).
Wattbike CEO Stephen Loftus recalls spotting Forme being produced in the same Giant production facility—an observation that piqued his interest when he later saw Forme and Clmbr featured at Wattbike’s USA distributor’s booth (Woodway) at the widely-attended fitness equipment trade show.
“Interactive Strength had expertise in a number of areas we were looking to accelerate – including delivering an engaging digital interface to help us enhance further our free-to-use Hub training app, a QC and procurement capability and team in Asia based in Taipei, distribution expertise and a team in our strategic growth market—USA and (soon) with Sportstech in Germany,” Loftus says, reflecting on the initial meeting.
Loftus was the first to “seed the idea” of partnering with Wattbike, Ward says, recalling his curiosity about the engineering team in Taiwan that had already worked with Giant/AIPS, the experience in being publicly listed and Interactive Strength’s access to different sources of growth capital.
“From his initial questions, it was clear to us that there was synergy, and we were on similar paths of growing performance-driven specialty equipment brands,” Ward says. “We connected our manufacturing and supply chain teams to discuss collaboration, but I put Wattbike on our list of top five acquisitions to pursue and then reached out last summer to explore how a deal might work.”
Ward says he was impressed by Wattbike’s established brand, premium product and reputation among professional athletes and Olympians—one with significant penetration in the U.K. and a considerable amount of potential beyond.
“We believe we can help unlock and create a lot of value,” Ward says. “You don’t see the kind of trust they’ve established with the world’s elite athletes every day, which is indicative to us of a brand that has the potential to grow much larger. They’ve done the hard work of evolving their product for other segments of the market, as well as riding out the whipsaw of the pandemic, and so we believe the brand is at an inflection point right now. They’re focused on performance, and they’re versatile enough as a product to fit in any vertical and work across both B2B and direct-to-consumer, with a lot of overlap with our existing distribution footprint, but we expect that they will help accelerate Clmbr and Forme as well, so there are multiple synergies.”
Ward is particularly bullish on Wattbike’s multilingual app, describing it as “terrific” and “widely-used,” but has not yet been monetized. Wattbike had unveiled the app late last year, offering expert-designed training programs tailored to cycling enthusiasts of all levels—including those recovering from injuries.
“They ticked a lot of the right boxes in terms of what would work within the larger portfolio we’re building,” he adds.
Looking to the future, TRNR’s board and management will be responsible for budgeting and major decisions, but the execution on a daily basis will be done by the existing Wattbike management team.
“Wattbike will draw on Interactive Strength’s resources, connections and expertise,” Ward explains. “But our plan is that day-to-day, their team and company will operate and go to market independently and under their own brand. This is consistent with how, over time, we will manage Forme and Clmbr— and how we intend to operate future acquisitions. We are planning for the Wattbike team to help accelerate Clmbr and Forme international penetration, and especially in the U.K.”
While Interactive Strength has its sights set on expanding Clmbr and Forme internationally, its smart fitness mirror recently secured a spot in Virgin Active’s new Zen Den at Los Angeles International Airport (LAX) —a high-visibility spot frequented by travelers. Meanwhile, Wattbike recently signaled its ambitions to tap into growing demand from commercial fitness operators, launching its Wattbike Air-Pro earlier this year. A premium option for the commercial cycling sector that builds on the Wattbike Pro/Trainer, the Air-Pro features updated magnetic resistance and internal electronics, as well as a 7″ performance touchscreen that integrates with the Wattbike Hub app and can connect to third-party apps with ANT+ and Bluetooth.
As early efforts begin to bear fruit, further movement in wellness tourism and commercial fitness space is expected to follow from Interactive Strength and Wattbike.
“The plan is to pool our collective resources, such as the Interactive Strength team in the U.S. and our collective distribution partnership with Woodway, to accelerate initiatives like the rollout of the Air Pro into premium gyms and fitness venues, as well as other key international markets,” Loftus says. “We are in thousands of gyms in the U.K. and only hundreds in the U.S. despite the market and population being many multiples larger— that is a massive opportunity to exploit more quickly with this new group structure.”
As for its devoted community of Wattbike fans, Loftus has a clear message:
“We want all our customers— whether commercial or consumer—to know that we’re staying true to what makes us great,” he says. “We’re just going to be able to innovate faster and sell into more gyms, homes and other facilities sooner. Interactive Strength believes in what we do, and they’re going to help us compete and win, worldwide—which is something every athlete probably understands.”