Playlist, the company behind the gym booking app ClassPass, stated on Thursday that it will merge with fitness technology firm EGYM. The transaction includes $785 million in equity funding, with Jared Kushner's investment firm Affinity Partners leading the financing.
Playlist reported that the deal values the combined entity at $7.5 billion. Affinity Partners provided new investment alongside existing backers such as Vista Equity Partners, Temasek, and L Catterton.
According to Playlist, the fresh equity will be used to invest in artificial intelligence. It will also support EGYM's expansion into Playlist's core markets, including North America and Asia, where EGYM currently has limited operations.
The merger occurs as younger Americans increasingly focus their spending on health and wellness, even amid economic uncertainty.
A 2025 McKinsey survey estimated that annual wellness spending in the United States alone exceeds $500 billion, growing 4% to 5% each year. The report indicated that Generation Z and millennials account for over 41% of this annual wellness expenditure.
Playlist, which operates various fitness and health platforms enabling online workout bookings, said the combined net revenue of the companies in 2025 was more than $800 million.
Following the merger, Playlist's brands, including Mindbody, Booker, and ClassPass, will continue normal operations. EGYM will operate as a subsidiary within the Playlist portfolio.