The companies have also talked about going public once a merger is complete, but no deal has been reached, according to Bloomberg, which added that further details couldn’t be learned immediately.
ClassPass, based in New York, works as a subscription-based business, allowing users to book workouts at fitness studios and other locations, Bloomberg reported. It also offers other services, such as massages and manicures.
In January 2020, ClassPass said its valuation was above $1 billion since it had gotten $285 million raised from investors, according to Bloomberg. Investors included L Catterton, Apax Digital and Temasek, while earlier investors included General Catalyst and Thrive Capital.
Meanwhile, Mindbody, based in San Luis Obispo, California, makes software that is used by gyms, fitness studios, salons and spas. The company was the target of $1.9 billion leveraged buyout from Vista, which closed in February 2019. The company went public in 2015, Bloomberg reported.
As the pandemic descended in early 2020, fitness companies that counted both ClassPass and Mindbody as customers were affected. Many were forced to close, and some were pushed into bankruptcy, according to Bloomberg.
In the chaos of the past year, ClassPass pivoted to digital classes and added vaccine centers to its platform in February, Bloomberg reported.
ClassPass CEO Fritz Lanman told PYMNTS in August that the digital offerings introduced during the pandemic had filled a hole for those who had become unable to go to their usual gyms. Lanman said people were “dying” to get back to studios and as such had gotten bookings from digital classes. Such classes had been a “stopgap” during the pandemic, although there were some key differences, including less personal feedback from instructors and less of a feeling of community.
Because of that, Lanman said he doesn’t think going to the gym is going away, as customers are still fans of immersive experiences and varied types of exercise they get at a gym.