ClassPass, a product that allows people to book gym classes at various locations, has bought its top Asian competitor GuavaPass.
Both companies did not disclose the financial terms of the deal. It is expected to be finalised by the end of January.
ClassPass will bring onboard about half of the GuavaPass staff and use the acquisition to facilitate rapid expansion across Asia and the Middle East.
The specific locations are Abu Dhabi, Bangkok, Beijing, Dubai, Hong Kong, Jakarta, Kuala Lumpur, Manila, Mumbai, Shanghai and Singapore. GuavaPass will cease operations in these cities. The brand will be used in other markets but will still be under the ClassPass umbrella.
“The GuavaPass founders reached out to us and said that they were raising more money and had some options developing but that they felt they could continue working on their original mission as a part of ClassPass. They are really missionaries for the space,” said ClassPass CEO Fritz Lanman.
“The transaction with GuavaPass will only accelerate our robust growth trajectory as we continue expanding throughout Asia and the Middle East,” said Lanman.
Founded by Rob Pachter and Jeffrey Liu, GuavaPass has presences across 11 cities in Asia and has partnered with 75 studio partners since its launch in 2015.
“To be acquired by an industry leader like ClassPass is a true testament to what we’ve built across Asia and the Middle East,” said GuavaPass Co-Founder, Jeffrey Liu.
Acquiring competition has been a strategic move by ClassPass. In 2014 the company acquired FitMob. However, the company, which has bagged a total of US$238 million financing, has said that it won’t pursue many acquisitions in the future. Lanman said it’s not the direction they want to go about for expansion.
ClassPass is now in more than 80 markets across the 11 countries, with plans to expand to 50 new cities in 2019.