January 15, 2026
Finance

Playlist and EGYM Unite to Create a $7.5 Billion Wellness Powerhouse

The merger brings together fitness software, connected hardware, and wellness platforms for a global health impact

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Summary

Playlist, the parent company of Mindbody, Booker, and ClassPass, has entered into a definitive agreement to merge with EGYM, a global leader in smart-fitness technology. Valued at $7.5 billion, the new joint venture aims to scale personal wellness worldwide by combining their complementary offerings in software, equipment, and wellness services. The transaction includes $785 million in new equity investments and brings together seasoned leadership teams to drive growth and innovation across key global markets.

Key Points

Playlist merges with EGYM to form a combined company valued at $7.5 billion, backed by $785 million in new equity investments.
The merged company generated over $800 million in net revenue in 2025 and aims to expand global wellness offerings, particularly across North America, Asia, and Europe.
Leadership includes Playlist CEO Fritz Lanman and EGYM CEO Philipp Roesch-Schlanderer as co-founders, with co-chairmanship shared with Vista Equity Partners' Monti Saroya.
The partnership integrates multiple layers of wellness including software platforms, connected fitness equipment, consumer booking services, and workplace wellness solutions into one global entity.

Playlist, the parent company behind well-known health and fitness brands including Mindbody, Booker, and ClassPass, has reached a definitive agreement to merge with EGYM, an international leader in smart-fitness technology. This strategic consolidation, announced on Thursday, represents a significant investment in the future of preventive health and wellness solutions.

The merger values the combined entity at approximately $7.5 billion and incorporates fresh equity funding of $785 million. This infusion of capital comes from prominent investors such as Affinity Partners, Vista Equity Partners, Temasek, and L Catterton. The completion of this transaction is contingent on customary regulatory approvals, a standard practice in deals of this magnitude.

In a statement describing the operational outlook post-merger, it was confirmed that Playlist's existing brands will continue to operate as they have prior to the transaction’s close. Similarly, EGYM will function as a subsidiary within the Playlist portfolio, maintaining its core activities while benefiting from the broader resources and reach of the combined organization.

Philipp Roesch-Schlanderer, the CEO of EGYM, emphasized the opportunity the merger presents to enhance preventive health initiatives. He highlighted the alliance's potential to address chronic diseases, reduce healthcare expenses, and improve overall well-being by shifting the focus from reactive care to prevention.

The leadership of the new Playlist organization will include Fritz Lanman, CEO of Playlist and founding chairman of ClassPass, alongside EGYM’s co-founder and CEO Philipp Roesch-Schlanderer as co-founders. Additionally, Roesch-Schlanderer will serve as co-chairman alongside Monti Saroya, co-head of Vista Equity Partners’ Flagship Fund, underscoring a collaborative governance structure.

Financially, the two companies combined generated over $800 million in net revenue during 2025. The merger is expected to enhance their global expansion efforts in fitness and wellness. Specifically, EGYM will leverage Playlist’s presence to extend its offerings in regions like North America and Asia, where Playlist’s footprint has been limited. Conversely, Playlist will gain greater access to Europe through EGYM’s established networks.

Lanman expressed enthusiasm regarding the integration of their complementary product suites, highlighting the synergy across software, connected fitness hardware, consumer booking platforms, and workplace wellness solutions. By uniting these elements under a global platform, the companies aim to offer a comprehensive wellness ecosystem.

The merger reflects ongoing trends in the fitness industry, where private equity investors have increasingly targeted boutique fitness companies for their robust cash flows, subscription-based revenue models, and consolidation prospects. Examples cited include Princeton Equity Group’s minority investment in Barry’s Bootcamp, and significant institutional ownership stakes in Planet Fitness held by BlackRock, T. Rowe Price, and Vanguard Group. Additionally, L Catterton’s majority stake acquisition in Solidcore, valuing that company at $600 million to $650 million, illustrates the growing financial interest in fitness ventures.

As the newly formed Playlist entity with EGYM seeks to transform the fitness and wellness landscape, the merger underscores a commitment to delivering scalable, technology-driven solutions aimed at improving health outcomes on a global scale.

Risks
  • The transaction remains subject to customary regulatory approvals which could delay or alter the completion of the merger.
  • Integration challenges could arise from combining different company cultures, product portfolios, and operational models under a single organization.
  • Expansion into new geographies like Asia and Europe involves market-specific risks including competition and regulatory hurdles.
  • Private equity-backed consolidation in the boutique fitness sector carries uncertainties around sustaining subscriber growth and managing cash flow under evolving market conditions.
Disclosure
Education only / not financial advice
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