Interactive Strength Inc. (Nasdaq

TRNR d/b/a “FORME”) Announces Non-Binding Letter of Intent and Exclusivity Agreement to Acquire a Connected Fitness Equipment Business

• The combined Company is projected to generate more than $25 million in gross revenue in 2024 and be cashflow positive and adjusted EBITDA profitable by the fourth quarter of 2024
  
• It is currently anticipated that all of the equity of the target company will be exchanged for TRNR equity and be subject to a “lock-up” until the end of October 2024, similar to pre-IPO shareholders
• The transaction is expected to close as early as the fourth quarter of 2023
  

AUSTIN, TX, Aug. 15, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Interactive Strength Inc. (Nasdaq: TRNR d/b/a “FORME”), maker of premium smart home gyms and provider of virtual personal training services, is excited to announce that it has entered into a non-binding letter of intent and exclusivity agreement to acquire a connected fitness equipment business.

The potential transaction, if consummated, is expected to accelerate FORME’s commercialization path, result in immediate scale across all functions and create a high-growth and profitable platform that sells connected fitness equipment and digital fitness services across B2B and B2C channels.

Based on internal management projections of the target, the 2023 combined gross revenues are projected to exceed $10 million and 2024 combined gross revenues are projected to exceed $25 million. By the fourth quarter of 2024, the combined business is projected to be cashflow positive and achieve positive adjusted EBITDA, based on identified cost synergies. The proposed acquisition is currently expected to be completed as early as the fourth quarter of 2023.

“We believe this will be a transformational acquisition that can accelerate our commercialization path. Further we believe the combination of these businesses will create tremendous value for both groups of shareholders,” said Trent Ward, co-founder and CEO of FORME. “We expect this transaction can help us achieve immediate scale across all of our cost centers, resulting in a high-growth, profitable platform that sells connected fitness equipment and digital fitness services across B2B and B2C channels.”

This strategic move is also expected to provide FORME and the target company with enhanced cross-selling opportunities and improved penetration into new end markets.

“We are excited about what we are seeing in the B2B channel in our own business. In fact, the strength of the performance in the B2B channel, as well as our belief that the FORME business would benefit from further investment in this area, were key reasons for our interest in the potential acquisition. This transaction sets the stage for FORME to become an industry leader across a range of modalities.”