The subscription-based fitness company that located an office in downtown Missoula nearly four years ago has been acquired by a rival company in an all-stock deal, ClassPass and Mindbody announced on Wednesday.
The acquisition follows research conducted by both companies that found consumers are getting back to in-person fitness as studios reopen after the onset of the Covid-19 pandemic.
ClassPass helps fill classes while Mindbody provides the software that helps fitness centers run their business.
“The ClassPass network includes many businesses already working with Mindbody. By combining our respective operations, we will create more seamless integration and unlock new revenue opportunities for business owners using both services, while continuing to support all fitness, salon and spa businesses who choose to work with Mindbody or ClassPass,” said Fritz Lanman, ClassPass CEO.
In January 2018, Lanman opened the ClassPass office in Missoula with a sizable downtown recruitment party. The location was the company’s third North American office, placing Missoula alongside New York and San Francisco.
The ClassPass office in Missoula employs an estimated 60 people and won’t be impacted.
“We have no plans to close the Missoula office,” ClassPass spokesperson Mandy Menaker told the Missoula Current on Thursday. “This is a very positive announcement for our team and we’re very excited about it.”
The terms of the deal were not disclosed, but Mindbody’s CEO Josh McCarter said Mindbody also secured a $500 million investment for the merged entity, led by Sixth Street, a global investment firm.
“Our companies share a singular focus on bringing wellness experiences to more people, in more places,” said McCarter. “By leveraging the best of both companies’ technology and expertise, we are more committed than ever to providing studios with best-in-class tools to help them grow and thrive, while also driving more consumers to their businesses.”