Fellow Shareholders:
It’s been a big week for TRNR!
Yesterday, we formally announced the binding transaction agreement with Sportstech, an outstanding, $40M+ revenue, Founder-lead, connected fitness and exercise equipment business based in Germany.
I also appeared alongside the Sportstech Founder & CEO, Ali Ahmad and fitness industry entrepreneur Mohammed Iqbal on stage at the 2025 Connected: Health & Fitness Summit, where we talked about both Sportstech and its markets, as well as the larger opportunities in today’s fragmented, global health & wellness markets.
As I noted yesterday, we’re now well underway on our vision of building a portfolio of businesses that can capture value across different segments and geographies in health & wellness.
What started with FORME and a public listing; continued with CLMBR as well as FORME Golf; extended into B2B sales to gym chains and international distribution agreements; has now progressed to the acquisition of a fully-realized business that radically expands our revenues, growth potential and shareholder value.
And as we’ve shared already, Sportstech’s terrific Founder & CEO Ali Ahmad isn’t taking any chips off the table, having embraced becoming, and remaining, a long-term shareholder of TRNR. We are also grateful that he has agreed to join the TRNR Board of Directors. These actions underscore the value both parties see in the combined business.
If you haven’t already, take a look at Sportstech’s offerings on their English language website. You can see what a great offering it has and why it’s achieved over 25% market share in the DACH region (Germany, Austria and Switzerland), as well as making inroads in Spain and France.
The release we issued yesterday does a good job outlining the rationale for the deal – TRNR gains a very well-run, profitable base of business in the 2nd-largest fitness market globally that transforms our P&L, with expected pro forma revenues greater than $50M and EBITDA profitability achieved during H2 ‘25.
Sportstech gets access to working capital and financing flexibility created by TRNR’s balance sheet and NASDAQ listing as it prepares an entry into the US fitness market.
It’s a terrific example of what equity-markets M&A can offer customers, partners and shareholders in terms of resources needed to grow successful businesses and sell great products.
As a reminder, the larger context for this transaction is important too – and represents a lot of what Mohammed and I discussed yesterday:
- The global health & wellness market is massive but fragmented – and constantly evolving for both consumers and businesses.
- Exact “TAM” size varies based on definition, but all estimates involve trillions (from an estimated $1.8 trillion in 2024, to 3x that amount and growing).
- This large market size and strong growth is expected to be a constant tailwind for TRNR as it is clear an increasing number of consumers are seeking to address health and longevity and we expect to be exposed to many different facets of the wellness market.
- This is why TRNR’s goal is to assemble a collection of opportunities for investors to capture the benefit of the underlying trends while meditating against downside risks via a portfolio approach
- This includes both B2B and DTC sales channels
- Consumers will continue to spend on health and wellness (it represents an “essential” spending category), but companies are equally expected to continue to represent a key purchasing pool (estimated corporate per employee spend between $100-150 in the US).
- This also includes a broader definition of fitness/wellness (TRNR can sell equipment, services, and any other related wellness offering – including, e.g., GLP-1s or hormone therapies)
- As the number of offerings increases, buyers and investors alike benefit from TRNR’s differentiated assortment
- More specifically, TRNR intends to intercept subscale, high-potential businesses before their multiples expand
The core of TRNR’s argument is to offer a value based operating strategy, disciplined acquisitions, and an increasingly improving and efficient capital structure, applied to a category rich with targets.
To set some expectations about the deal process from here, our next step would be to finish formalizing the definitive agreement to acquire the company, including setting the conversion price for the initial investment of stock in the acquisition.
Following that milestone, we’d look to formally “close” the deal and complete the transaction to the satisfaction of all appropriate parties and regulators. At each of these phases, we’ll share more information and details about both the rationale for the deal and the acquisition itself.
While we have a lot of work to do growing our existing brands and sales and are taking on new challenges in helping a scaled business get even bigger, we want shareholders to connect all the dots here.
We look forward to continuing to take you on this journey, and appreciate your engagement and support.
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Below is the presentation from the Connected: Health & Fitness Summit Fireside chat with Trent Ward, Mohammed Iqbal, and Ali Ahmad.
