Wellness Tech Platform Mindbody Eyes Return to Public Markets

Wellness technology platform Mindbody is eyeing a return to the public markets as people start heading to gyms and boutique fitness studios, Financial Times (FT) reported on Monday (April 11).

Founded in 2001, Mindbody initially went public on Nasdaq in June 2015 under the ticker MB, raising more than $100 million in its initial public offering (IPO) at a rate of $14 per share. According to FactSet, the company’s stock opened at $16.22 and closed at $11.56 on its first trading day.

Vista Equity Partners agreed to purchase all of its stock at $36.50 per share for a total of $1.9 billion at the end of 2018, with the deal closing in the first quarter of 2019. At its peak, Mindbody’s stock was trading at $43.85 per share.

Headquartered in San Luis Obispo, California, Mindbody is a software-as-a-service (SaaS) that enables gyms, spas, and boutique fitness facilities to offer people a way to reserve and pay for classes online or using the mobile app. The company acquired ClassPass in October 2021 in an all-cash deal.

See also: Wellness Platform Mindbody Buys Subscription Service ClassPass

Valued at over $1 billion in January 2020, ClassPass is an alternative to a membership at a fitness facility, giving people the option of reserving individual studio classes and gym sessions from boutique operators.

During the first two weeks of the pandemic when the company froze all classes, revenues dropped 95%, CEO Fritz Lanman told FT. Class reservations are now up roughly 27% in February compared to last February.

Mindbody CEO Josh McCarter told FT that the company doesn’t need to go public for liquidity, but an IPO would raise funds that could help it improve its tech, expand internationally, and move into additional sectors like mental health and wellness.

He said people have redefined and expanded their definition of wellness to include stress reduction and mental health, not just physical fitness.

Related: Plagued by Problems, Peloton’s Latest Crisis Clouds Broader Health and Fitness Trend

The proposed public offering follows a drop in the connected workout-from-home fitness models like Peloton. Peloton’s value was $50 billion at the beginning of 2021 and is now less than $8 billion, FT reported.