Playlist and EGYM Announce Merger in $1.2 Billion Deal Backed by Kushner-led Private Equity Firm

Playlist, the parent company of the subscription-based fitness platform ClassPass, has agreed to merge with EGYM, a leading provider of connected fitness equipment and software solutions. The transaction, valued at $1.2 billion, marks a pivotal consolidation within the consumer discretionary and fitness technology sectors. The merger is backed by a private equity investment vehicle associated with Jared Kushner, signaling strong external confidence in the combined entity’s growth trajectory. The newly formed company will operate under a unified brand, leveraging EGYM’s hardware and digital ecosystem with Playlist’s extensive network of fitness studios and subscriber base. Post-merger, the combined business is expected to serve over 8 million users across 10,000 fitness locations globally, with a footprint spanning North America, Europe, and Asia. This scale positions the entity as a top-tier player in the global digital fitness infrastructure market. Financially, the deal reflects a significant valuation premium, with the combined entity projecting $450 million in annual recurring revenue by 2027. EGYM’s technology integration with Playlist’s subscription model is anticipated to drive user retention and monetization improvements, particularly through personalized workout analytics and AI-driven recommendations. The merger is expected to close in Q3 2026, subject to regulatory approvals. The transaction is likely to influence investor sentiment across the fitness tech and consumer discretionary sectors. Publicly traded companies with overlapping services, such as Peloton and Mindbody, may face intensified competitive pressure. Additionally, the involvement of a high-profile private equity backer could prompt further consolidation in the wellness technology space.