The acquisition is looking to transform wellness appointment bookings.
If you’ve ever signed up for a yoga or meditation class, chances are you used Mindbody. Well-known wellness tech platform Mindbody announced Wednesday that it would be acquiring female-founded ClassPass, a monthly subscription service that unlocks an extensive network of wellness experiences, including gyms, spas, studios, and salons.
With Mindbody and ClassPass intertwined, consumers and business owners will have a seamless experience, in a time when people are eager to head back to in-person fitness classes.
CEO of Mindbody, Josh McCarter, told Athletech News that the pandemic has pushed wellness to the forefront, and both companies will work together to help people on their journey to fitness as well as support businesses in a post-COVID era.
“COVID has been a stark reminder for everyone about the importance of staying happy and healthy,” said McCarter. “By joining forces, Mindbody and ClassPass will power a new era by making wellness accessible to more people in more places and help businesses around the globe to rebound in the process.”
Mindbody has also secured a $500 million investment from global investment firm Sixth Street. The firm’s portfolio of investments include AirBNB, Datavant, Legends, MDLive, the San Antonio Spurs, Spotify, and Sprinklr. The Sixth Street funding accompanies Vista Equity Partners, Mindbody’s majority investor. The funding will be used for growth and future innovations. Mindbody’s move to acquire ClassPass has sparked talks of a possible upcoming IPO.
Fritz Lanman, CEO of ClassPass, said that the joint effort will be a game-changer in terms of revenue.
“Today is an incredibly exciting day for ClassPass, for Mindbody, and for the fitness industry,” Lanman told Athletech News. “With this deal, we will bring our SmartTools technology to more businesses around the world and help them to turbocharge revenue optimization. We will also work with Mindbody to improve the consumer experience, making it even easier to discover and book top-rated spa and fitness experiences everywhere you travel.”
The acquisition comes at a pivotal time in the fitness industry. Mindbody says that 80% of consumers feel that wellness is more crucial than ever before, and data from the Mindbody and ClassPass platforms shows that bookings are back to pre-Covid times.
ClassPass was founded by Payal Kadakia, an MIT grad that had the idea to create a search engine where a user could find and book fitness classes back in 2011. By the end of 2017, ClassPass had 45 million reservations.
“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 in a press release. “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 company will also introduce Mindbody Capital, which will allow small business owners to obtain financing to help them grow.
Courtney Rehfeldt has worked in the broadcasting media industry since 2007 and has freelanced since 2012. Her work has been featured in Age of Awareness, Times Beacon Record, The New York Times, and she has an upcoming piece in Slate. She studied yoga & meditation under Beryl Bender Birch at The Hard & The Soft Yoga Institute. She enjoys hiking, being outdoors, and is an avid reader. Courtney has a BA in Media & Communications studies.