Mindbody, the leading wellness experience technology platform, announced it has entered into a definitive agreement to acquire ClassPass, a monthly subscription service providing access to the world’s most extensive network of fitness and wellness experiences. This deal will bring two of the wellness industry’s most prominent leaders together, creating a one-stop shop for business owners and consumers.
“This acquisition comes at a pivotal time for the wellness industry as it continues to rebound from COVID-19 related closures – and local and authentic experiences are more important to people than ever,” said Josh McCarter, CEO of Mindbody. “Our companies share a singular focus on bringing 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 best-in-class tools to help them grow and thrive, while also driving more consumers to their businesses.”
In conjunction with the acquisition, Mindbody has secured a strategic investment of $500 million from a group led by Sixth Street, a leading global investment firm. Prior Sixth Street investments include Airbnb, Datavant, Legends, MDLive, the San Antonio Spurs, Spotify, and Sprinklr.
Mindbody’s intent to acquire ClassPass comes on the heels of recent research and data from both companies that prove consumers are getting back to in-person wellness experiences as studios reopen.
Nearly eighty percent of consumers feel wellness is more important than ever. Additionally, several fully reopen markets are seeing bookings on the Mindbody platform rebounding to pre-COVID levels. ClassPass consumer usage is at one-hundred-and-ten percent of pre-COVID use for subscribers who have gone back to class.
For business owners, ClassPass offers data-driven, machine learning-based SmartTools that help studios manage excess inventory and market unsold spots at a revenue-maximizing price. Studios on ClassPass typically experience a thirty percent increase in reservation volume and a fifteen to twenty percent increase in revenue when utilizing SmartTools. Additionally, fifty percent of ClassPass members are new to boutique fitness upon joining, and eighty percent visit 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 globe, Mindbody has remained focused on its mission to help people lead happier, healthier lives by connecting the world to wellness. That leading B2B technology, combined with Mindbody’s existing consumer marketplace and the reach of ClassPass’s network, will create the most comprehensive and integrated platform in the industry.