LONDON, United Kingdom — Digme Fitness has acquired Another Space – the boutique studio concept from premium fitness operator Third Space, as the global fitness industry continues to consolidate.
The deal will see Digme take over the brand’s two London-based studios, in Covent Garden and Bank, boosting its portfolio to 8 sites across the UK. For Third Space, meanwhile, it marks the end of its presence in the boutique fitness sector, just three years since Another Space first launched.
“We have always admired Another Space with their high-quality team, beautiful studios and prime locations. We are very lucky to be welcoming them to our company,” commented Geoff Bamber, Digme’s co-founder and CEO.
“We believe that this transaction will strongly benefit our existing community, with two new central London locations and more concepts to avail of, as well as benefiting the members of Another Space by giving them more opportunities to work out across London.”
Launched in 2016, as a pay-as-you-go spin and HIIT studio, Digme has been steadily scaling its proposition, at a time when the $100 billion global fitness market is enjoying unprecedented growth.
Having completed the single-site acquisition of Tribeca Studios, a boutique fitness studio located in Ealing, in January last year, the brand, which also operates sites in Richmond, Moorgate, Blackfriars, Fitzrovia, Ealing and Oxford, recently announced it would also be franchising its business model to help widen its reach further.
At the time Bamber explained: “Not only can we offer somebody the chance to own a high yielding business, but our franchisees will attract new customers and join in our mission to change lives by bringing the joy of exercise to the world.”
Potential franchisees have yet to be announced, however, with the acquisition of Another Space strengthening Digme’s reach across London, the brand is now in an ideal position to look beyond the capital for its next stage of growth.
For Third Space, the deal also comes amidst a period of aggressive expansion for the business which is set to open its sixth club in London’s Islington Square retail and leisure complex, imminently. At a cost of over £10 million and footprint of 47,000 sq ft, it will be the largest club to open in the capital in over 10 years.
A 40,000 sq ft club in Canary Wharf’s Wood Wharf development is also in the pipeline for 2021, as part of plans to double the size of its portfolio over the next five years.
According to Third Space’ CEO Colin Waggett, Third Space is more in demand than ever before, with its performance demonstrating: “significant unfulfilled demand for a luxury lifestyle brand that provides a premium experience combining substance and style.”
By handing over the reins to Another Space, the business will be able to leverage that demand more effectively, by continuing to invest in its existing clubs and doubling down on its member experience.
In a statement emailed to existing customers, Digme confirmed that for now, Another Space will remain trading as it is, while the two companies integrate. However, changes are expected to take place within the coming months.