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The acquisition is projected to significantly scale Interactive Strength’s operations across sales, engineering, logistics, supply chain, and corporate overhead. With an anticipated revenue between $15M and $20M for 2024, the combined entity aims to be cashflow positive and achieve adjusted EBITDA profitability, potentially within the fourth quarter of the year.
Interactive Strength’s CEO, Trent Ward, expressed optimism about the deal, noting that the integration of CLMBR could accelerate the company’s commercialization path and create a high-growth, profitable platform. The partnership with WOODWAY, a distributor, is expected to drive equipment sales with minimal marketing expenditure.
The financial terms of the acquisition include an enterprise value of $15.4M, which is between 1.0x and 1.3x the projected 2024 revenue of CLMBR. The deal structure also incorporates a mix of common equity, non-voting Series B preferred equity, and senior and subordinated debt.
CLMBR’s connected vertical climber, which features a large-format touch display with on-demand, instructor-led classes, complements Interactive Strength’s existing product portfolio. The FORME brand offers an immersive at-home fitness experience through connected hardware products and various personal training and health coaching services.
This strategic move is seen as a model for future value creation for Interactive Strength, as it continues to expand its presence in the connected fitness equipment market. The information provided in this article is based on a press release statement.
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