(Reuters) - Fitness companies Beachbody LLC and Myx Fitness LLC will go public through a three-way merger with a blank-check firm affiliated with former TikTok chief Kevin Mayer, valuing the combined entity at around $2.9 billion.
Beachbody said on Wednesday that on-demand, interactive cycling provider Myx will become a part of the parent, The Beachbody Company, which will operate three brands: Beachbody On Demand, Openfit and Myx.
The deal will be supported by a private investment of $225 million led by institutional investors such as Fidelity Management & Research Company LLC and Fertitta Capital.
Forest Road Acquisition Corp, a special purpose acquisition company (SPAC), is led by Keith Horn, a former chief operating officer at hedge fund Elliot Management Corp. Former TikTok CEO Kevin Mayer is a strategic adviser to the company.
SPACs like Forest Road are shell companies that raise funds to take a private company public. They have gained immense popularity in recent times, as they allow companies looking to enter public markets to avoid the hassles associated with an initial public offering.
Founded in 1998 by Carl Daikeler and Jon Congdon, Santa Monica-based Beachbody has over 3 million subscribers and offers more than 2,700 on demand videos, its website showed.
Myx, which closely competes with the likes of Peloton Interactive Inc and SoulCycle Inc, provides one-on-one coaching and training customized to users’ heart rate.
The combined entity will be listed on the New York Stock Exchange under the new ticker symbol “BODY”.
Reporting by Sohini Podder in Bengaluru; Editing by Shinjini Ganguli
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