Playlist and EGYM Announce Merger Valued at $7.5 Billion, Accelerating AI-Driven Fitness and Wellness Integration

The global fitness and wellness technology sector has witnessed a major consolidation move. Playlist, the parent company of ClassPass, has announced a merger with Munich-based smart fitness technology company EGYM, valuing the combined entity at approximately $7.5 billion.

As part of the transaction, the companies have secured $785 million in new equity financing, led by Affinity Partners, the investment firm founded by Jared Kushner, with participation from existing investors including Vista Equity Partners, Temasek and L Catterton. The deal remains subject to customary regulatory approvals. Latham & Watkins LLP acted as legal advisor to EGYM on the transaction.

According to the companies, the newly raised capital will be primarily allocated to artificial intelligence (AI) development, while also supporting EGYM’s expansion into Playlist’s core markets, particularly North America and Asia. At present, EGYM’s market penetration in these regions remains relatively limited, whereas Playlist’s platforms have already established strong commercial and customer foundations.

Following completion of the merger, Playlist’s portfolio brands — including Mindbody, ClassPass and Booker — will continue to operate independently. EGYM will remain operational as a subsidiary within the Playlist group. Combined net revenue for the two companies exceeded $800 million in 2025, highlighting their growing scale and revenue-generating capabilities.

From a leadership perspective, Playlist CEO Fritz Lanman and EGYM co-founder and CEO Philipp Roesch-Schlanderer will serve as co-founders of the newly structured Playlist organization. Roesch-Schlanderer will also take on the role of co-chairman alongside Monti Saroya, co-head of Vista Equity Partners’ Flagship Fund.

Industry observers note that this transaction represents more than a financial merger. It reflects a broader shift within the fitness and wellness sector toward deeper integration of software platforms, connected hardware, AI-driven personalization and corporate wellness solutions. EGYM’s portfolio includes AI-enabled individualized training systems, smart strength equipment and its Wellpass corporate wellness marketplace, while Playlist brings strong capabilities in SaaS platforms, consumer booking services and in-person fitness studio ecosystems.

The deal also aligns with broader consumer trends. Despite ongoing economic uncertainty, younger demographics continue to prioritize spending on health and wellness. According to a 2025 McKinsey survey, annual wellness spending in the United States alone exceeds $500 billion, growing at an estimated 4% to 5% per year, with Gen Z and millennials accounting for more than 41% of total expenditure.

Amid continued industry consolidation and the rapid adoption of AI technologies, the merger between Playlist and EGYM is widely regarded as one of the most significant transactions in global fitness technology in recent years, reinforcing the industry’s trajectory toward scale, platformization and preventive health-focused solutions.