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

The fitness industry is undergoing rapid consolidation, and the recent merger between Playlist, the parent entity of well-known fitness brands Booker, ClassPass, and Mindbody, and EGYM represents one of the most significant moves to date. EGYM, recognized for its smart gym equipment, AI-driven workout programs, and the corporate wellness platform Wellpass, has now officially joined forces with Playlist.

On Tuesday, Playlist confirmed the completion of the merger, having initially disclosed the agreement back in January. Following the finalization, EGYM will operate under the Playlist umbrella, with leadership shared between Playlist CEO Fritz Lanman and EGYM CEO Philipp Roesch-Schlanderer.

This merger values the newly combined entity at an impressive $7.5 billion.

The strategic union is anticipated to create a formidable fitness and wellness powerhouse. By integrating EGYM into its portfolio, which includes B2B platforms like Booker—serving spas and salons—and Mindbody, a widely used software for gyms and studios, as well as the consumer-facing app ClassPass, Playlist is effectively consolidating multiple facets of the fitness industry into a cohesive system. This merger enhances the entire spectrum of fitness operations, from how businesses function to how users find and reserve classes, how workouts are conducted in gyms, and how employers provide fitness benefits to their staff.

The scale of this combined enterprise is particularly compelling. The company estimates it will engage millions of users across over 30 countries, uniting more than 40,000 businesses within Mindbody and over 88,000 venues through ClassPass, alongside approximately 20,000 employer partners via EGYM's Wellpass, and over 33,000 fitness locations equipped with EGYM technology.

Playlist is not alone in this trend of mergers and acquisitions. Recent activities in the sector include MyFitnessPal's acquisition of Cal AI, an AI-powered calorie counting application, as well as Strava's purchases of cycling app The Breakaway and running app Runna.

Furthermore, EGYM made headlines in 2024 when it acquired FitReserve, a U.S.-based fitness platform, further emphasizing the ongoing consolidation within the industry.