This morning digital fitness coaching platform Pear Sports announced that it has purchased fellow exercise-focused startup Functional Solutions.
Following this acquisition, Pear Sports (not to be confused with digital therapeutics darling Pear Therapeutics) plans to roll Functional Solutions’ visual programming and custom fitness content into its enterprise SaaS. This can then be sold to gyms, hotels, resorts and other companies seeking custom workout plans. Functional Solutions will stay at its headquarters in Newport News, Virginia.
The purchase includes Functional Solution’s catalog of workout programs and functional movement videos, which can be distributed via TVA, app, text or QR code. This will add on to Pear’s Health & Fitness platform, which includes interactive audio coaching and adaptive workouts.
WHY IT MATTERS
Fitness streaming products are especially popular today. Perhaps the best known is recently IPO'd New York City-based Peloton, known for its connected home exercise equipment and virtual workout class business.
Earlier this month, Peloton settled a patent infringement claim it held against Flywheel regarding the former’s at-home exercising bike, named Fly Anywhere Bike. As part of the agreement, Flywheel admitted that its bike copied elements of Peloton’s remote streaming patent.
THE LARGER TREND
Mergers and acquisitions continue to be a popular exit strategy for digital health companies. Last year Rock Health recorded 112 such deals. While the M&A space is active, it is on the decline.
Digital health M&As hit an all time high in 2015 with 180 deals, meaning that 2019’s number represents a 40% decline, according to Rock Health.
ON THE RECORD
“Digital engagement with members is now a requirement in the fitness industry and others,” Functional Solutions founder and CEO Dave Hannum, said in a statement. “I’m fired up about combining our leading visual exercise content distribution technology with Pear’s adaptive audio coaching and biometrics to maximize the choices and benefits for all our customers.”