Interactive Strength signs binding agreement to acquire Wattbike

Interactive Strength (TRNR) has signed a binding transaction agreement to acquire Wattbike, an indoor performance training bike business, which has cumulatively sold more than 100,000 bikes. The company said, “The binding agreement is a significant milestone for both growth businesses, forming a unique, omni-channel, fitness-equipment portfolio with key operations in each of the world’s three largest fitness markets, the US, Germany and the UK, which also has a stellar global reputation among elite athletes and professional sports teams, health and medical professionals and top gyms. The deal is expected to close as early as the second quarter and is expected to be immediately accretive to TRNR’s results…The integration of Interactive Strength and Wattbike will create significant operating synergies, leveraging shared international distributors such as WOODWAY in the US and Germany and MeFit Pro in the Middle East. Both companies have strong commercial partnerships with leading gym operators and direct-to-consumer sales-Wattbike predominantly in the UK and TRNR in the US. TRNR’s planned acquisition of Sportstech also strengthens its presence in Germany, supporting Wattbike’s projected growth in the priority US and German export markets. Additionally, Interactive Strength’s Quality and Supply team in Taiwan works closely with Wattbike’s long-standing manufacturing partner, Giant/AIPS, ensuring a seamless integration and continued commitment to product excellence.” TRNR will acquire 100% of Wattbike in an all-stock transaction. The shareholders of Wattbike will be locked up until at least June 2026 and there is no cash consideration being paid to those investors. This performance-driven valuation structure, with up to 60% of the total consideration being contingent upon future performance, protects the TRNR shareholders and should ensure an attractive acquisition multiple of earnings.