CLIMBR
Connected fitness is consolidating.
What’s happening: Interactive Strength, Inc., maker of fitness screen FORME, is acquiring vertical climber brand CLMBR.
Through a sales and distribution deal with treadmill maker Woodway, the brands will prioritize commercial sales, including gyms, hospitality, and medical clinics.
Laying the groundwork, in August, CLMBR enacted layoffs and teased a “strategic transaction.” Then, the following week, FORME submitted an LOI to buy an unnamed connected fitness business.
After going public this spring, FORME received a NYSE delist warning in August. Now, the company is adding CLMBR and revamping its business plan to remain in good standing — with the combined entity forecasting $20M in revenue by the end of 2024.
Of note, CLMBR had previously raised more than $26M from the likes of Jay-Z, Pitbull, and Novak Djokovic. The company also operated a Denver fitness studio that is also changing hands, with FORME CEO Trent Ward adding:
“Clients love the CLMBR Studio experience in Denver and we will keep it open as we film content there for the thousands of members and it’s a great source for testing product iterations and features.”
B2B or bust. The two brands see Woodway as a wedge into more profitable segments.
While FORME inks hotel deals in the US and Europe, it’s also partnering with the Titleist Performance Institute to bring 1:1 golf training to country clubs.
And CLMBR’s latest model may find its place at the gym, especially as exercisers seek out time-saving workouts, says Woodway director of sales and marketing Eric Weber:
“We believe CLMBR will be supplanting stair-steppers and elliptical machines on gym floors around the world due to its attractive price, small footprint and safe and efficient full-body workout.”
Punchline: As consumer demand wanes, connected fitness is pivoting from residential to commercial sales. Upgrading the gym’s cardio room, interactive machines could be appealing to operators. In the meantime, expect to see more M&A as equipment makers lose steam.
