The fitness sector is witnessing rapid consolidation, highlighted by a significant merger involving Playlist, the parent company of fitness brands like Booker, ClassPass, and Mindbody, which has merged with EGYM, a startup famed for its smart gym equipment and AI-led wellness solutions.
On Tuesday, Playlist confirmed the completion of this merger, originally announced in January. Post-merger, EGYM will function under the Playlist umbrella, with leadership roles split between Playlist co-founder Fritz Lanman and EGYM CEO Philipp Roesch-Schlanderer. This merger values the new entity at an impressive $7.5 billion.
The formation of this fitness and wellness giant is anticipated to revolutionise the industry. By integrating EGYM into its portfolio alongside established B2B services like Booker (which caters to spas and studios) and Mindbody (a widely used software for gyms), as well as the consumer-oriented ClassPass app, Playlist is seamlessly interlinking various aspects of the fitness business. This integration aims to enhance operational efficiencies for fitness entities, improve user engagement in class bookings, and innovate how gyms deliver workouts, including wellness benefits offered by employers.
The scale of this merger is substantial, with the combined company poised to engage millions of users across over 30 countries. They will connect with more than 40,000 businesses through Mindbody, 88,000 venues via ClassPass, around 20,000 employer partners through EGYM’s Wellpass, and over 33,000 fitness locations equipped with EGYM technology.
This trend of consolidation is not isolated, with other significant moves in the industry, such as MyFitnessPal acquiring Cal AI and Strava purchasing cycling and running apps.
This merger also marks a strategic pivot from Playlist’s earlier intentions to go public. Previously, the company explored an IPO under the Mindbody-ClassPass banner, but by 2025, it rebranded as Playlist, unifying its primary business lines.
As part of the deal, Playlist has secured $785 million in new investments from firms like Affinity Partners, Vista Equity Partners, Temasek, and L Catterton. This funding is earmarked to bolster AI initiatives and facilitate EGYM’s expansion into North America and Asia, regions where its footprint had been minimal.
Playlist has already begun implementing several AI-driven features, including Mindbody’s Messenger AI for customer inquiries and booking automation, ClassPass SmartTools which optimise class spot allocations, and the EGYM Genius platform that customises training plans based on individual goals and available equipment.
However, the company has withheld specifics regarding any forthcoming AI enhancements, suggesting that it is still in the early stages of development and deployment.
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