Team Beachbody
February 10, 2021
The Beachbody Company said it will become a public company through a three-way merger with Forest Road Acquisition Corp. and connected-fitness maker Myx Fitness. The deal values the combined business at 2.9 billion dollars and is expected to close in the second quarter of 2021, with a New York Stock Exchange listing under the ticker BODY.
The combination is expected to add more than 420 million dollars of cash, including a 225 million dollar private placement led by institutional investors that include Fidelity Management and Research Company LLC and Fertitta Capital. Forest Road already held about 300 million dollars in trust, assuming no redemptions. Beachbody management and shareholders will roll their entire equity stake and are expected to own about 84 percent of the business at closing.
The parent will hold Beachbody On Demand, Openfit, and Myx. Co-founder Carl Daikeler remains chairman and chief executive. Jon Congdon, co-founder and chief executive of Openfit, stays in that role. Kevin Mayer, a former TikTok chief executive, will join the board. The company cited more than 2.6 million paid digital subscribers, a coach and influencer network of more than 400,000 people, and 2020 pro forma revenue of 880 million dollars across the three brands. Myx sold more than 27,000 bikes in its first year at a starting price of 1,299 dollars.
Daikeler said digital growth accelerated in 2020 as more people trained at home, and that pairing Myx hardware with the Beachbody and Openfit content libraries will expand the at-home offer. The company said it expects compound annual revenue growth of 30 percent over the next five years and projected more than 1 billion dollars of revenue in 2021.