ClassPass Workout Subscription App Purchased By Mindbody Secures $ 500 Million Investment
Mindbody, a SaaS company providing cloud-based management tools to the wellness industry, has agreed to acquire ClassPass, a subscription-based workout recording app recently valued at $ 1 billion.
ClassPass is more flexible than a traditional gym membership, as members pay a monthly fee to earn credits to attend a variety of local gyms and fitness classes in their area. According to ClassPass, fitness studios that use its service see an average 30% increase in booking volume and up to 20% in revenue.
The company uses machine learning tools to help owners of gyms, yoga studios, and other wellness centers maximize participation in premium classes.
Vista Equity Partners, which also owns Stats Perform, is Mindbody’s majority investor and partner. As part of this acquisition, Mindbody will receive a strategic investment of $ 500 million to help innovate and grow the business. Sixth Street, an investment firm that has already taken stakes in Airbnb, Spotify, Legends and the San Antonio Spurs, led the group by making the new half-billion injection.
“This acquisition comes at a pivotal time for the wellness industry as it continues to rebound from COVID-19-related shutdowns – and local, authentic experiences are more important than ever to people,” said the Mindbody CEO Josh McCarter in a statement.