The American technology group ABC Fitness Solutions is to acquire the Irish gym management software company Glofox for more than 200 million euros.
Glofox was founded in 2017 by Conor O’Loughlin, a former Connacht Rugby scrum-half; Anthony Kelly; and Finn Hegarty. All three will continue to be leaders in the combined business.
The transaction is expected to close later this year. Although the companies are not drawn on the financial details of the deal, it is believed to be worth at least 200 million euros.
The latest abbreviated accounts of Zappy Ltd, which trades as Glofox, show it recorded a loss of €5 million in 2019, compared to a loss of €1.7 million a year earlier . This brought its cumulative losses to 8.6 million euros at the end of December 2019. Its turnover that year had doubled to 2.7 million euros.
Collectively, the companies said they would support more than 31 million members at more than 24,000 fitness centers after the merger.
“We are thrilled to be part of ABC, a pioneer in the fitness industry for over 40 years,” said O’Loughlin.
“Being able to align with a partner who shares the same purpose and values and who can provide additional resources to drive innovation and accelerate international growth is a huge plus for our team and our customers.”
“As part of ABC Fitness Solutions, Glofox has an extremely exciting future, and we look forward to taking the combined business to the next level.”
Glofox deploys an all-in-one platform to enable users to manage all aspects of their fitness business, from customer acquisition to billing management, and from business intelligence to customer engagement. members. It serves customers in over 80 countries.
The deal follows a period of strong growth for Glofox. It doubled its workforce last year to 200 people and in March announced plans to add 150 more staff. To date, he has raised more than $23 million (€22 million) in investments from backers. Enterprise Ireland was among its backers.
Its customers range from solo operators to major fitness franchises such as the Mark Wahlberg-backed F45, which was valued at $1.4 billion after its IPO last year.
Glofox changed course during the coronavirus pandemic, when most of its members had to shut down their operations due to lockdown restrictions.
It rolled out a new platform at the start of the Covid crisis to help gyms stream live classes and offer premium on-demand content to customers, which has helped many of them stay in activity.
The platform’s success, coupled with a pick-up in business for fitness studios and gyms as members poured in after restrictions were lifted, buoyed the company.
ABC, founded in 1981, says it helps more than 20,000 clubs and facilities in 75 countries to “perform better and more profitably”.
He said the addition would significantly expand his global reach and amplify his ability to serve fitness organizations of “any size, anywhere,” including personal trainers, yoga studios, boutique gyms and clubs. commercial fitness.
He said Glofox shared his values, was committed to his teams and customers, and had a “proven track record” in developing software that enabled fitness operators to “thrive”.
ABC Chief Executive Bill Davis said, “We are delighted to welcome Glofox. Its range of solutions, its focus on the gym and boutique studio sector and its impressive international reach are compelling.
“Combined with our existing strength in North America and Latin America, as well as our software solutions for the personal trainer and commercial fitness club industries, we now have a combined offering that is greater than the sum of its parts.”