Home Marketing automation Mindbody buys ClassPass and raises $ 500 million

Mindbody buys ClassPass and raises $ 500 million

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  • Mindbody, a leading wellness experience technology platform, has announced that it has entered into a definitive agreement to purchase ClassPass. And Mindbody has also raised $ 500 million in strategic funding.

Mindbody – a leading wellness experience technology platform – announced that it has entered into a definitive agreement to purchase ClassPass, a monthly subscription service providing access to the largest network of fitness and wellness experiences. to be in the world. This agreement will bring together two of the wellness industry’s most prominent leaders, creating a one-stop shop for business owners and consumers.

As part of the acquisition, Mindbody has secured a strategic investment of $ 500 million from a group led by Sixth Street, a leading global investment firm. Sixth Street’s past investments include Airbnb, Datavant, Legends, MDLive, San Antonio Spurs, Spotify, and Sprinklr.

This investment, coupled with the continued support of Mindbody’s investor and majority partner, Vista Equity Partners will help further accelerate the growth of the business and build on the product innovations and investments that have been made over the course of the pandemic. And key milestones have included creating a fully integrated virtual platform that prepares business owners for success in a hybrid world, enhancements to Mindbody’s marketing automation tools to improve acquisition and retention. clients, and the introduction of Mindbody Capital, a product that gives small business owners access to financing to help them invest and grow their businesses.

Mindbody’s intention to purchase ClassPass follows recent research and data from both companies that shows consumers are returning to in-person wellness experiences as studios reopen. Almost 80% of consumers believe that well-being is more important than ever. Additionally, several markets that have fully reopened are seeing reservations on the Mindbody platform rebound to pre-COVID levels and ClassPass consumer usage is at 110% of pre-COVID usage for subscribers who have returned to class. .

For business owners, ClassPass offers data-driven and machine-learning SmartTools that help studios manage excess inventory and market unsold items at a revenue-maximizing price. And studios on ClassPass typically experience a 30% increase in booking volume and a 15% to 20% increase in revenue when using SmartTools. And 50% of ClassPass members are new to the fitness store when they join, and 80% are visiting a new studio for the first time using the platform.

Best known for its SaaS platform that powers tens of thousands of wellness businesses around the world, Mindbody has remained focused on its mission to help people lead happier, healthier lives by connecting the world to well-being. And this cutting-edge B2B technology – combined with Mindbody’s existing consumer market and ClassPass network reach – will create the most extensive and integrated platform in the industry.

This acquisition will be an undisclosed price inventory deal and will integrate both teams, with ClassPass continuing to operate its app and website. And upon closing, Lanman will serve as President of ClassPass and Mindbody Marketplace, working alongside McCarter and the Mindbody leadership team.

KEY QUOTES:

“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. Our companies share a singular goal of delivering wellness experiences to more people, in more places. By leveraging the best of both companies’ technology and expertise, we are more committed than ever to providing studios with the best tools to help them grow and prosper, while attracting more consumers to their businesses. “

– Josh McCarter, CEO of Mindbody

“The ClassPass network includes many companies that already work with Mindbody. By combining our respective operations, we will create more seamless integrations and open up new revenue opportunities for business owners using both services, while continuing to support all fitness, salon and spa businesses that choose to work. with Mindbody or ClassPass. For consumers using our marketplace and professionals enrolled in the ClassPass corporate program, our goal is to create greater choice and flexibility in the experiences they can book.

– Fritz Lanman, CEO of ClassPass

“As a customer and user of Mindbody and ClassPass for several years, I know how the combination of these two drivers will impact the industry as it regains momentum. “

– Bryan Myers, President and CEO of [solidcore] fitness shop

“Since the founding of ClassPass, our North Star has always been the way we can help people seamlessly discover and book soul-enriching experiences. This acquisition will be a milestone for a company founded by women, and I am confident in the leadership of Josh McCarter and my longtime business partner Fritz Lanman to move the company forward and continue to deliver a world-class experience for consumers and business owners.

– ClassPass founder Payal Kadakia Pujji


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