MARCH 6, 2025 | Fellow Shareholders:
Can’t stop, won’t stop!
We’re very pleased to announce the news that we’ve signed another letter of intent and exclusivity agreement to buy a third connected fitness and equipment company in an all-stock deal, with a long-term lock-up.
Like our pending acquisition of Sportstech, this target also:
- has built a scaled business that’s a leader in its field;
- has a proven operating record for more than ten years;
- has achieved profitability; and
- has absolutely terrific products that complement our existing brands.
As we’ve highlighted in our recent investor deck, we have a disciplined formula for our deals:
- A transaction must meaningfully boost our growth;
- Consideration should be primarily equity, with performance-driven earn outs; and
- We must align upside for all shareholders and risk-manage any downside.
We’ve taken this same approach with our new target – and given this formula as well as the fact that we have been speaking with the target for many months, we expect the transaction to close very quickly.
In fact, we hope to complete the deal at the end of this month, i.e. in less than four weeks!
We expect this effort will add more than $15M+ to TRNR’s pro forma top line, over and above the $50M+ in pro forma revenue we expect for 2025 once Sportstech is included into our financials.
This is terrific validation for our strategy as well as our execution. It’s also worth noting that we discovered and first started speaking with the CEO of this potential acquisition at last year’s Health and Fitness Association (HFA) show, and this year’s HFA show is next week – underscoring the importance and value of our conference schedule for both organic sales as well as growth through acquisition.
With this year’s show coming up fast, we are looking forward to having more to say about TRNR and the opportunities we are pursuing soon. Of course, very high on that list will be more information about the target company, its products and the operation and the growth we envision in the next few weeks.
Meantime, stay tuned and stay bullish.
Forward-Looking Statements:
This post includes certain statements that are “forward-looking statements” for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the future. Forward-looking statements generally are accompanied by words such as “believe”, “project”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity”, “plan”, “may”, “should”, “will”, “would”, “will be”, “will continue”, “will likely result” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the possibility of completing this or other acquisitions, in general or as early as the end of March 2025, as well as the acquisition being accretive to the Company’s financial results, or the profitability materially improving through operating synergies. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Risks and uncertainties include but are not limited to: demand for our products; competition, including technological advances made by and new products released by our competitors; our ability to accurately forecast consumer demand for our products and adequately maintain our inventory; and our reliance on a limited number of suppliers and distributors for our products. A further list and descriptions of these risks, uncertainties and other factors can be found in filings with the Securities and Exchange Commission. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements.