Interactive Strength, maker of fitness screen FORME, has revealed plans to acquire vertical climber brand CLMBR for an undisclosed sum.
The move is part of Interactive Strength's plans to focus on the commercial fitness market by offering a connected exercise solution which will also incorporate the company's virtual personal training services.
As part of the deal, Interactive Strength will work with iconic treadmill manufacturer Woodway, CLIMBR's commercial distribution partner, to expand its foothold in the gym, health club and hospitality space.
According to Trent Ward, co-founder and CEO of FORME, the deal will result in "immediate scale in all functions" – from sales, engineering and logistics to supply chain – while also diversifying revenue due to the "significant growth" in its B2B channels.
Ward said: “We believe this will be a transformational acquisition that can accelerate the company’s commercialisation path.
“We expect this transaction can help us achieve immediate scale across all of our cost centers, resulting in a high-growth, profitable platform that sells connected fitness equipment and digital fitness services across B2B and B2C channels.”
"After selling thousands of the consumer version of the CLMBR machine over the past few years to a very engaged customer base, we have a shared vision to expand into the commercial and medical channels with the CLMBR 02.
"CLMBR 02 started shipping this summer after almost a year of in-house testing, including implementing feedback from loyal customers in their Denver-based flagship group fitness location, Studio CLMBR.
"By partnering with Woodway for sales and distribution, we have the best possible go-to-market option for CLMBR given Woodway’s experienced domestic and international sales teams and the brand’s reputation for the highest quality equipment in the industry.
"This transaction is a great example of checking all the boxes – accretive financials driven by cost synergies, strategic benefits such as gaining a very strong route to market with Woodway and shifting the business to be primarily B2B, and a complementary product with an attractive patent portfolio.
"Of course, it is also critical to have a shared vision and the investors in CLMBR are investing fully alongside our shareholders as long-term supporters of the combined platform.”
Interactive Strength is listed on the Nasdaq stock market and has now executed a binding acquisition agreement with CLMBR.
The two companies are proceeding towards closing the transaction "as soon as all closing conditions are met", which is expected to be in the fourth quarter of 2023.
