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.