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· Posted on
February 21, 2024

Mindbody has acquired ClassPass and it's a match made in business-heaven

Mindbody is the quiet achiever that all the cool kids are using (think: F45, KX Pilates and many of your locals).

What's the key learning?

  • Mindbody has acquired ClassPass, a fitness app that gives you access to different gym classes, in an all-stock deal
  • An all-stock deal is when the buyers (i.e. Mindbody) give the sellers (i.e. ClassPass) stocks in their company as payment
  • It's normally done 'cos the selling company wants to have ownership in the acquiring company.

Background: Mindbody is the quiet achiever. It's a platform that runs the booking system for gyms, fitness studios and even beauty salons. All the cool kids are using it (think: F45, KX Pilates and many of your locals).

What happened: ClassPass is a fitness app that gives you access to different gym classes. So, instead of going to one gym...never, you get to go to heaps of gyms (also...maybe...never?).

What else: Now, Mindbody has acquired ClassPass in an all-stock deal. So businesses using ClassPass could come on as Mindbody customers too.

So what's the key learning?

💡An all-stock deal is when the buyers (i.e. Mindbody) give the sellers (i.e. ClassPass) stocks in their company as payment.

💡All-stock deals are normally done for two reasons:

  1. The selling company wants to have ownership in the acquiring company because they reckon it's a great company, or
  2. The buying company doesn't have enough cash assets to make the purchase.

💡It's the opposite of an all-cash deal, where acquiring companies pay the sellers in cash only...'cos they got fat stacks lying around.

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