NEW YORK, July 17, 2026 – EGYM has announced a $7.5 billion merger with Playlist, a strategic play to capture a larger share of healthcare and corporate spending. The deal positions the combined entity to offer a comprehensive fitness ecosystem that includes software, connected equipment, and consumer access, moving beyond traditional membership models.
The enterprise value of the transaction is less than 9.4 times Playlist's 2025 net revenue of over $800 million. The actual multiple is lower, as revenue exceeded the minimum disclosed. This valuation places the company between two publicly traded fitness peers: Life Time Group Holdings (NYSE: LTH) with a market cap of $9.74 billion and Planet Fitness (NYSE: PLNT) at $4.22 billion. Playlist's valuation includes debt, while the market caps of LTH and PLNT exclude it.
EGYM's CEO Philipp Roesch-Schlanderer described the deal as a 'long-awaited bridge between fitness, wellness, and the healthcare market.' The goal is to secure revenue from healthcare, corporate wellness, and operational budgets, not just gym memberships. A key indicator of this shift is the U.S. Navy's increasing fitness spending.
The Navy's fitness budget rose 18.5% to $62.8 million in fiscal 2026, with a proposed 6.7% increase to $67 million for fiscal 2027. In Yokosuka, the Navy invested over $1 million in NOFFS gear and launched Blendz smoothie bars, aiming to improve sailor readiness. While Playlist and EGYM are not suppliers, the trend signals growing demand for integrated fitness solutions.
Playlist's distribution network is vast: Mindbody supports over 40,000 businesses, ClassPass features more than 88,000 venues, and EGYM adds 20,000 employer partners and 33,000 fitness locations. This scale enables data collection on health outcomes, which may be the merger's most valuable asset. Bookings show intent, while connected devices track adherence and progress, allowing employers to measure the impact on healthcare costs.
Risks remain. The $7.5 billion figure includes debt, highlighting leverage. Integrating software, hardware, and marketplaces is complex. Healthcare buyers will demand proof of cost reduction. The next catalyst is not more venues but a contract funded by medical, employer, or readiness budgets. Yokosuka shows such budgets exist and are growing.
The merger underscores a broader trend: fitness is increasingly seen as a tool to reduce healthcare expenses and improve productivity. With obesity rates at 27% among Navy active-duty personnel, the need for effective wellness programs is clear. The combined entity aims to provide a standardized approach that lowers barriers and ensures consistent procurement.
As regular U.S. trading began, Nasdaq shares were active in pre-market hours. The deal is expected to close later this year, subject to regulatory approval. Investors are watching for signs that the bridge between fitness and healthcare can generate tangible revenue.
