EGYM Secures ~$200 million of Growth Capital led by L Catterton and Meritech Capital to Continue Building a Leading Global Platform at the Intersection of Fitness and Healthtech
Denver, Colorado, September 25, 2024
EGYM, the international innovation leader in fitness technology and corporate wellness, today announced that it has raised approximately $200 million of growth capital at a valuation of over $1 billion from L Catterton, a leading global consumer-focused investment firm, and Meritech Capital, a leading Silicon Valley technology-focused venture firm. The investment will support the continued expansion of the EGYM Wellpass corporate wellness network and further development of innovative digital solutions, smart strength equipment and tech-enabled products for data-driven and personalized training, allowing fitness club operators to deliver a distinctive experience to its members.
EGYM’s mission is to transform the healthcare industry via advanced, data-driven fitness technology, focusing on prevention rather than simply addressing chronic conditions. The combination of EGYM’s Wellpass corporate fitness memberships, which unlocks access to a diverse breadth of fitness facilities to millions of employees worldwide, with EGYM’s integrated and tech-enabled “smart strength equipment” and software installed across fitness clubs globally, creates value and drives results across the entire fitness ecosystem. EGYM offers gym operators the “new age” of smart, integrated strength equipment and data-enabled tools to engage with, train and retain members through AI-developed personalized workouts, health metrics tracking and interconnectivity across a member’s activities and workouts in any fitness club. EGYM’s proven ability to drive positive health outcomes for millions of employees has created a healthier employee population, enhancing employee health, productivity, retention and satisfaction, enabling employers to enjoy higher employee retention. EGYM has driven rapid and profitable growth in Europe and is excited by the opportunity to transform the US fitness market. With a 700-person team across the globe, the Company will leverage its success in Europe to introduce its industry-transforming offering around the world.
Marc Magliacano, a Managing Partner in the L Catterton Flagship Fund and a successful fitness investor for over 20 years, said, "I am convinced that EGYM will help to revolutionize the way people workout in gyms across the globe. EGYM’s technology enables gyms to become far more appealing and effective to both experienced and new gym members through unprecedented personalization and measurement."
Paul Madera, Co-Founder and Partner at Meritech, said, "EGYM has impressed us with their ability to bring a huge vision – one that was particularly challenging to execute in the early stages – to market so successfully. EGYM now offers employers a truly technology-driven solution that increases employee wellbeing and productivity while reducing sick days and healthcare costs."
EGYM CEO Philipp Roesch-Schlanderer: "L Catterton and Meritech were my two absolute dream investors for our mission to build the leading global platform at the intersection of fitness and healthtech. With Marc and Paul, we are strengthening our board with both fitness industry and technology experts. They share our vision of turning the world's largest market, the healthcare industry, from repair to prevention. Thanks to our smart technology solutions and our fast-growing international corporate wellness platform, we now have a real opportunity to accelerate this change and are more determined than ever to do so."
The EGYM Wellpass corporate wellness network currently has 17,000 sports partners and 14,000 corporate customers with over three million eligible employees. Around 18,000 fitness and health facilities, including many of the world's largest enterprise studio chains, use EGYM products and services. Six million people around the world train with EGYM every month.
In spring, EGYM presented its new, AI-based software innovation, EGYM Genius. It creates fully automated, personalized training plans (using the individual’s specific biological capabilities) that are precisely adapted to all the equipment in any fitness or health facility. Trainers and members benefit from the insights of seven billion EGYM training data points. EGYM Genius connects all parts of the rapidly growing EGYM ecosystem with over 200 connected partner brands.
About EGYM
EGYM is a vertically integrated market leader in the fitness and health industry with the vision of transforming healthcare from repair to prevention. EGYM partners with companies to improve employee health by providing access to fitness and health facilities and equips those facilities with smart gym equipment and digital solutions to offer an AI-driven workout experience for people of all skill levels. Corporates benefit from reduced healthcare costs and increased productivity, and clubs from a growing membership base that stays engaged. For more information about EGYM, please visit egym.com.
About L CATTERTON
L Catterton is a market-leading consumer-focused investment firm, managing approximately $35 billion of equity capital across three multi-product platforms: private equity, credit, and real estate. The firm's funds have the ability to invest between $5 million and $5 billion, across the capital structure, in well-positioned consumer businesses. Leveraging deep category insight, operational excellence, and a broad network of strategic relationships, L Catterton's team of more than 200 investment and operating professionals across 17 offices partners with management teams to drive differentiated value creation across its portfolio. Founded in 1989, the firm has made over 275 investments in some of the world's most iconic consumer brands. The L Catterton fitness investments have included Peloton, Equinox, Soul Cycle, CorePowerYoga, FlyWheel, Pure Barre, Xponential Fitness, Tonal, Hydrow, BodyTech, and iFIT/NordicTrack, among others. For more information about L Catterton, please visit lcatterton.com.
About Meritech
Meritech is one of the original venture growth investors and invests $10 - $100 million into rapidly growing technology companies across the US and internationally. Over the past 25 years, Meritech has managed over $5 Billion and invested in many of the most successful venture-backed companies of that period to include Braze, Coupa, Datadog, Facebook, Mulesoft, NetSuite Salesforce, Snowflake, Roblox and Tableau. The Meritech investing and support philosophy is simple: we exist to help teams build market-leading companies in the technology markets that matter. We believe our companies should be center stage as enduring brands and entrepreneurs are the drivers of success. We do one thing: invest in the best late-stage tech companies in the universe. For more information about Meritech, please visit www.meritechcapital.com.