The company behind ClassPass and Mindbody just got a lot bigger with a $7.5B merger

The fitness sector is experiencing rapid consolidation, marked by a significant recent merger. Playlist, the parent company of popular fitness brands including Booker, ClassPass, and Mindbody, has officially merged with EGYM, a startup renowned for its innovative gym equipment and AI-driven fitness solutions. The announcement came on Tuesday, confirming that the merger, initially revealed in January, has been finalized. As a result of this merger, EGYM will now operate as part of Playlist, reinforcing the leadership structure with Fritz Lanman from Playlist and Philipp Roesch-Schlanderer from EGYM at the helm. This merger values the newly formed entity at an impressive $7.5 billion, positioning it as a formidable player in the fitness and wellness sector. This strategic alliance is set to enhance the consumer and business experience within the fitness industry. By integrating EGYM’s advanced technology with existing B2B platforms like Booker and Mindbody, and the consumer-focused ClassPass, Playlist is creating a cohesive system that addresses every aspect of fitness—from operational logistics for businesses to user engagement and class bookings. The scale of the merger is remarkable, with the combined company poised to connect with millions of users in over 30 countries. It will incorporate more than 40,000 businesses through Mindbody, upwards of 88,000 venues via ClassPass, 20,000 employer partners through EGYM Wellpass, and over 33,000 fitness locations equipped with EGYM products. This move follows a trend in the industry, with other companies like MyFitnessPal and Strava also expanding through acquisitions. Notably, EGYM previously acquired FitReserve in the U.S. in 2024. This merger also marks a strategic pivot for Playlist, which had been contemplating an IPO after operating under the Mindbody-ClassPass banner. By 2025, the company rebranded as Playlist, consolidating its core businesses under a unified identity. The deal is backed by a significant investment of $785 million, led by Jared Kushner's Affinity Partners, along with contributions from Vista Equity Partners, Temasek, and L Catterton. This funding is expected to bolster future AI initiatives and facilitate EGYM’s expansion into North America and Asia, regions where its presence has been limited. Playlist is already implementing several AI-powered innovations, including Mindbody’s Messenger AI for customer interactions, ClassPass’s SmartTools for class capacity management, and EGYM Genius for customized training plans. While the company has not disclosed any forthcoming AI features, the developments signal a promising future for the fitness industry as technology continues to evolve.