In a major consolidation of the fitness technology sector, the parent company of popular booking platform ClassPass is set to merge with smart gym equipment leader EGYM. The deal, announced on Thursday 15 January 2026, values the combined entity at a substantial 7.5 billion US dollars (£5.6 billion).
Deal Details and Key Backers
The merger agreement brings together Playlist – which owns ClassPass, Mindbody, and Booker – and German fitness tech firm EGYM. A significant feature of the transaction is a new equity investment of $785 million (£586 million). This capital injection is spearheaded by Affinity Partners, the private equity firm founded by Jared Kushner, former White House adviser and son-in-law to Donald Trump. Other investors include Vista Equity Partners, Temasek, and L Catterton.
Under the merger terms, EGYM will operate as a subsidiary within the Playlist portfolio. The leadership of the new organisation will be shared, with Playlist CEO Fritz Lanman and EGYM boss Philipp Roesch-Schlanderer serving as co-founders once the deal is complete.
The AI-Driven Future of Fitness
Artificial intelligence sits at the core of both companies' strategies, a key driver behind the merger. EGYM utilises AI to create personalised, adaptive workout programmes for its connected gym equipment. Meanwhile, Playlist's subsidiaries, including ClassPass, employ AI-driven software to optimise user bookings, studio schedules, and customer engagement.
ClassPass, which launched in the UK in 2015, allows subscribers to access a vast network of gyms and studios for a monthly fee. Its data shows remarkable growth in specific areas, with global bookings for pilates classes surging by 66% in 2025. The platform offers everything from yoga and strength training to pilates.
Strategic Implications for the Wellness Industry
This merger represents a pivotal step in building comprehensive digital and physical infrastructure for the global wellness market. By combining EGYM's hardware and biomechanical data with Playlist's extensive booking software and consumer network, the new entity aims to control a significant portion of the fitness ecosystem.
Fritz Lanman stated the merger marks a “pivotal moment for both our companies as we continue to build the infrastructure behind the world’s most meaningful in-person wellness experiences.” The deal signals a move towards vertically integrated solutions, offering everything from gym management software and smart equipment to consumer-facing class discovery and payment.
The involvement of high-profile backer Jared Kushner adds a notable dimension to the deal, drawing further attention to the growing financial and technological clout of the wellness sector. For UK consumers and gym operators, this consolidation may lead to more integrated services but also raises questions about market competition in the evolving fitness technology landscape.
