Online fitness membership platform ClassPass announced last week that it will be acquiring GuavaPass, a similar competing service active in Asia and the Middle East.
The deal is set to close before the end of the month. Although the specific terms were not disclosed in the original announcement, a company spokesperson told Fortune that the purchase ran ClassPass $4.2 million. Along with assuming control of GuavaPass’s operations, CEO Jeffrey Liu, President Rob Pachter and a number of GuavaPass employees will be joining ClassPass.
Both services allow users to pay a single subscription price for access to local classes for yoga, cycling, Pilates and other workouts using a mobile app.
Why it matters
ClassPass has so far been fairly vocal regarding its plans for global expansion. This acquisition provides ClassPass with GuavaPass business in 11 Asian and Middle Eastern cities, according to a statement. Cities in which ClassPass is already active will see an end to GuavaPass’s services, with other areas continuing under ClassPass’s supervision “until further notice”
“We’re thrilled to acquire GuavaPass’ assets and select talent and continue building the biggest fitness membership for our customers, and the largest global network for our partners. This transaction will only accelerate our robust growth trajectory as we continue expanding throughout Asia and the Middle East,” ClassPass CEO Fritz Lanman said in a statement. “While acquiring competition is not part of our growth strategy, it’s clear that GuavaPass’ founders and team are committed to a common mission and we look forward to welcoming them to ClassPass as we continue global expansion.”
What’s the trend
Founded in 2013, ClassPass boasted a couple of big funding rounds in 2017 and 2018, and now sits at a total of $225 in investment financing. According to the company, it is now operating in more than 80 markets across 15 different countries, and has plans to launch in 50 or more new markets before the end of the year.
On the record
“To be acquired by an industry leader like ClassPass is a true testament to what we’ve built across Asia and the Middle East,” Jeffrey Liu, CEO and cofounder of GuavaPass, said in a statement. “When my cofounder, Rob Pachter, and I started this company three years ago, our mission was to provide convenient access to top fitness experiences. ClassPass’ unrivaled talent and technology means that, together, we can take our common mission further.”