Facebook, Hyatt, Weight Watchers, And Others Are Scooping Up Fitness Tech Startups

Since 2013, fitness tech exits have steadily increased, following a similar trajectory to overall deals and funding to the space. The fitness industry has seen 98 total M&As and IPOs since 2013, with 2017 already seeing 15 exits in the space. The space has seen a diverse range of acquirers from high momentum startups such as CureFit to large-scale hotel chains. Most recently, Hyatt acquired Exhale, as the company looks to extend their brand beyond hotels into wellness services.

We define fitness tech as companies leveraging software and technology to augment or transform approaches to developing or maintaining physical fitness. Companies in this category provide tools and services that range from mobile workout apps to wearables to AR/VR use cases for the fitness industry. We exclude companies focusing solely on the holistic health and wellness or physical therapy markets.

Using CB Insights data, we analyzed first exits in fitness tech since 2013. We also created a timeline showcasing fitness tech first exits between 2013 and 2017 YTD (8/31/17).

Annual exit trends

Fitness tech exits have steadily climbed since 2013. 2016 saw 30 fitness tech exits, which consisted of 29 M&A transactions, including Fitbit’s acquisition of Pebble Technology, and 1 IPO, of fitness equipment provider Technogym. 2017 has seen 15 exits thus far, including the IPO of Brazilian sporting goods retailer Netshoes.

2015 saw a peak in fitness tech IPOs, at 3 total, including of fitness tracker Fitbit and health and wellness software platform MINDBODY.

Fitness Tech Exits Timeline

To analyze the timeline of exits and acquirers in the sector, we used CB Insights data to plot each startup’s respective exit since 2013 – 2017 through 8/31/17.

Key takeaways:

• No typical acquirer: The fitness industry has seen diverse acquirers including private equity firms, gyms, sports retailers, apparel brands, individuals and more. Even Facebook has made an acquisition in the space, of fitness tracking app Moves in Q2’14.
• Boosting digital capabilities: Legacy brands have used M&A to boost their digital capabilities during a time when digital channels in the fitness industry are more important than ever. For example, Anytime Fitness acquired mobile personal training solutions provider PumpOne in Q4’15.
• Cautious corporates: Compared to other industries, corporates have been less active in driving the majority of M&A activity within the fitness industry. UnderArmour has been the most active of corporates in the space, having acquired 4 companies since 2013. Their last acquisition was of workout discovery app Gritness in Q3’15.
• Acquirers become the acquired: Since 2013, a few fitness tech companies that were previously acquirers became the newly acquired. For example, nutrition and weight management app MyFitnessPal acquired social exercise company Sessions in Q1’14 only to be acquired by UnderArmour in Q1’15.
• High momentum fitness startups becoming acquirers: Many high momentum startups in the fitness space have increased their M&A activity. ClassPass, with its acquisition of Fitmob in Q2’15, and CureFit, which has made 3 acquisitions since Q3’16, have leveraged M&A to expand their digital fitness and health capabilities.
• Fitness is integral to lifestyle brands and the health and wellness ecosystem: Companies have used M&A to meet consumer demand for lifestyle brands and holistic health and wellness services. Since 2013, Weight Watchers acquired two fitness companies to bolster their brand as a “healthy lifestyle” company – online personal training marketplace Wello (Q2’14) and 5-minute workout app Hot5 (Q2’15). Additionally, Hyatt just recently acquired boutique fitness and spa brand Exhale in efforts to integrate wellness services within the company’s offerings.