Mindbody and ClassPass Set to Go Public Within 12-18 Months, CEO Announces
3 Sources
3 Sources
[1]
Mindbody ClassPass to go public in 12-18 months, CEO says
Aug 14 (Reuters) - Mindbody ClassPass is aiming to go public in the next 12-18 months and has retained Goldman Sachs as its lead banker, the CEO of the fitness and wellness marketplace told Reuters in an interview. California-based Mindbody, which went public in 2015, was taken private by Vista Equity Partners for $1.9 billion in 2019. In 2021, it acquired ClassPass, a subscription-based workout platform, valuing the combined entity at about $3 billion then. "We are a story of two different businesses under one umbrella, both of which are growing, both of which are profitable, setting us up for an eventual IPO," CEO Fritz Lanman said. "We have Goldman ... but we haven't chosen the second and third leads yet," he added. In its last funding round in 2021, the company raised $500 million through a strategic convertible debt investment led by Sixth Street. Together now known as Mindbody ClassPass, the company is expecting to achieve a 20% growth in revenue for 2024 touching around $500 million, Lanman said, adding that ClassPass is 65% bigger than pre-Covid. The company is seeing a strong recovery post-pandemic with increased demand for yoga and in-person fitness sessions. Moreover, ClassPass application is leveraging artificial intelligence to help customers book salon and spa sessions. Lanman said the company is keeping an eye on how IPOs have been performing, with the cash from the offering to be mainly for shareholder liquidity and mergers and acquisitions. Vista Equity is the biggest shareholder of the business along with all ClassPass venture capitalists including L Catterton, Temasek, General Catalyst and Thrive Capital continuing to be stakeholders as the business is compounding really fast for them, he added. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Vijay Kishore)
[2]
Mindbody ClassPass to Go Public in 12-18 Months, CEO Says
(Reuters) - Mindbody ClassPass is aiming to go public in the next 12-18 months and has retained Goldman Sachs as its lead banker, the CEO of the fitness and wellness marketplace told Reuters in an interview. California-based Mindbody, which went public in 2015, was taken private by Vista Equity Partners for $1.9 billion in 2019. In 2021, it acquired ClassPass, a subscription-based workout platform, valuing the combined entity at about $3 billion then. "We are a story of two different businesses under one umbrella, both of which are growing, both of which are profitable, setting us up for an eventual IPO," CEO Fritz Lanman said. "We have Goldman ... but we haven't chosen the second and third leads yet," he added. In its last funding round in 2021, the company raised $500 million through a strategic convertible debt investment led by Sixth Street. Together now known as Mindbody ClassPass, the company is expecting to achieve a 20% growth in revenue for 2024 touching around $500 million, Lanman said, adding that ClassPass is 65% bigger than pre-Covid. The company is seeing a strong recovery post-pandemic with increased demand for yoga and in-person fitness sessions. Moreover, ClassPass application is leveraging artificial intelligence to help customers book salon and spa sessions. Lanman said the company is keeping an eye on how IPOs have been performing, with the cash from the offering to be mainly for shareholder liquidity and mergers and acquisitions. Vista Equity is the biggest shareholder of the business along with all ClassPass venture capitalists including L Catterton, Temasek, General Catalyst and Thrive Capital continuing to be stakeholders as the business is compounding really fast for them, he added. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Vijay Kishore)
[3]
Mindbody ClassPass to go public in 12-18 months, CEO says
"We are a story of two different businesses under one umbrella, both of which are growing, both of which are profitable, setting us up for an eventual IPO," CEO Fritz Lanman said. "We have Goldman ... but we haven't chosen the second and third leads yet," he added. In its last funding round in 2021, the company raised $500 million through a strategic convertible debt investment led by Sixth Street. Together now known as Mindbody ClassPass, the company is expecting to achieve a 20% growth in revenue for 2024 touching around $500 million, Lanman said, adding that ClassPass is 65% bigger than pre-Covid. The company is seeing a strong recovery post-pandemic with increased demand for yoga and in-person fitness sessions. Moreover, ClassPass application is leveraging artificial intelligence to help customers book salon and spa sessions. Lanman said the company is keeping an eye on how IPOs have been performing, with the cash from the offering to be mainly for shareholder liquidity and mergers and acquisitions. Vista Equity is the biggest shareholder of the business along with all ClassPass venture capitalists including L Catterton, Temasek, General Catalyst and Thrive Capital continuing to be stakeholders as the business is compounding really fast for them, he added. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Vijay Kishore)
Share
Share
Copy Link
Mindbody and ClassPass, leading wellness technology platforms, are preparing for an initial public offering (IPO) within the next 12 to 18 months, as announced by CEO Josh McCarter. This move comes amid growing interest in the wellness sector and the companies' strong market positions.
Mindbody and ClassPass Announce IPO Plans
Mindbody, a prominent wellness technology platform, and its subsidiary ClassPass are gearing up for a significant milestone in their corporate journey. Josh McCarter, the CEO of Mindbody, has revealed that the companies are planning to go public within the next 12 to 18 months
1
. This announcement comes as the wellness industry continues to experience substantial growth and increased investor interest.Company Background and Market Position
Mindbody, founded in 2001, has established itself as a leading provider of software solutions for the wellness industry. The company's platform serves various businesses, including fitness studios, spas, and salons, helping them manage bookings, payments, and customer relationships. In 2021, Mindbody acquired ClassPass, a subscription-based fitness marketplace, in a all-stock deal
2
. This strategic move has strengthened Mindbody's position in the wellness technology sector.IPO Timing and Market Conditions
The decision to go public within the next 12 to 18 months reflects the companies' confidence in their growth trajectory and the overall market conditions. McCarter stated that the timing aligns with their expectations for the business and the market
3
. This move comes at a time when the wellness industry is experiencing increased consumer interest and investment activity.Related Stories
Financial Backing and Previous IPO
Mindbody's journey to this point has been supported by significant financial backing. In October 2021, the company received a $500 million investment led by Sixth Street, a global investment firm
1
. This funding has likely played a crucial role in fueling the company's growth and expansion plans.It's worth noting that this isn't Mindbody's first experience with going public. The company had previously listed its shares in 2015 before being taken private by Vista Equity Partners in a $1.9 billion deal in 2019
2
. This prior experience with public markets may prove advantageous as the company prepares for its upcoming IPO.Industry Trends and Future Outlook
The wellness industry has seen significant growth in recent years, driven by increasing consumer focus on health and fitness. The COVID-19 pandemic has further accelerated this trend, with many people prioritizing their physical and mental well-being. Mindbody and ClassPass are well-positioned to capitalize on these trends, offering solutions that cater to both wellness businesses and consumers.
As Mindbody and ClassPass prepare for their public offering, investors and industry observers will be closely watching the companies' performance and growth strategies. The success of this IPO could have broader implications for the wellness technology sector, potentially paving the way for further investment and innovation in this rapidly evolving industry.
References
Summarized by
Navi
[1]
[2]
Related Stories
Weekly Highlights
1
Anthropic Secures $13B in Funding, Reaching $183B Valuation Amid AI Industry Boom
Business and Economy
2
Tesla Proposes $1 Trillion Pay Package for Elon Musk Tied to Ambitious AI and Robotics Goals
Business and Economy
3
Anthropic's $1.5B AI Copyright Settlement: A Landmark Deal Under Scrutiny
Policy and Regulation
Weekly Highlights
Explore today's top stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
