NEW YORK, United States — Fitness membership platform ClassPass has signed an agreement to acquire GuavaPass, a competitor operating in Asia and the Middle East. The deal comes as ClassPass continues to rapidly expand its international footprint.
According to Yahoo Finance, the $4.2 million deal is expected to close later this month, with ClassPass absorbing GuavaPass’ operations in 11 cities across Asia and the Middle East including Abu Dhabi, Bangkok, Beijing, Dubai, Hong Kong, Jakarta, Kuala Lumpur, Manila, Mumbai, Shanghai and Singapore.
Following the closure of the acquisition, GuavaPass will cease operations in markets where ClassPass is available. In remaining markets, the GuavaPass brand will continue to operate under the ClassPass umbrella until further notice. GuavaPass Co-Founders Jeffrey Liu and Rob Pachter, meanwhile, will join the ClassPass team to help bolster ClassPass’ international presence.
“To be acquired by an industry leader like ClassPass is a true testament to what we’ve built across Asia and the Middle East,” said GuavaPass Co-Founder, Jeffrey Liu.
“When my Co-Founder, Rob Pachter, and I started this company 3 years ago, our mission was to provide convenient access to top fitness experiences. ClassPass’unrivalled talent and technology mean that, together, we can take our common mission further.”
Launched in 2015, GuavaPass swiftly grew to become the largest social community of premium fitness studios in Asia and the Middle East. Via online and app-based systems, monthly membership, the platform gave users access to unlimited fitness classes and healthy living perks across Singapore, Hong Kong, Manila, Beijing, Dubai and seven other markets.
ClassPass meanwhile, which officially launched in Singapore last year, boasts over 15,000 partners in 80 cities worldwide. Founded in 2013, the brand has cemented itself as a disruptive force intent on dominating the global fitness market.
Having completed an $85 million funding round last year — featuring participation from Temasek Holdings, a firm owned by Singapore’s government and L Catterton, which has previously backed fitness brands including Equinox, Peloton and Core Power Yoga — to support its future plans, the company has been forging ahead with expansion into international markets. In 2019, it plans to launch in at least another 50 new markets.
However, when questioned if ClassPass, would be shifting its focus to international markets rather than domestic, CEO Fritz Lanman told Yahoo Finance that its latest move wasn’t considered a trade-off. Instead, the company saw the big opportunity that currently exists in international markets and decided to leverage that.
With 25,000 fitness clubs across Asia-Pacific, accommodating around 22 million club members, a move into the market was a natural next step for the world’s leading fitness membership platform.
“While acquiring competition is not part of our growth strategy, it’s clear that GuavaPass’ founders and team are committed to a common mission and we look forward to welcoming them to ClassPass as we continue global expansion,” said Lanman of the deal.
“We’re thrilled to acquire GuavaPass’ assets and select talent and continue building the biggest fitness membership for our customers, and the largest global network for our partners. This transaction will only accelerate our robust growth trajectory as we continue expanding throughout Asia and the Middle East.”