Interactive Strength Inc. (TRNR) has announced a definitive agreement to acquire Ergatta, the pioneer in game-based connected fitness, in a strategic move to bolster its digital content offerings. The acquisition unites TRNR's portfolio of premium hardware, including Wattbike and CLMBR, with Ergatta's highly engaging software platform. The transaction is expected to be finalized in the first quarter of 2026, setting the stage for a new chapter in interactive fitness.
A Strategic Move in Connected Fitness
Ergatta has distinguished itself with a profitable, asset-light business model centered on its unique game-based fitness content. The Brooklyn-based company boasts an industry-leading monthly net retention rate of over 98%, underscoring its platform's addictiveness. With projected 2026 revenues exceeding $10 million and a 30% EBITDA margin, Ergatta represents a financially stable and growing asset for TRNR's portfolio.
TRNR CEO Trent Ward highlighted the immediate value Ergatta brings, noting its best-in-class gaming experience is already licensed by industry giants. The company plans to integrate this software across its Wattbike and CLMBR brands to enhance user engagement. Furthermore, TRNR will leverage Ergatta's proven customer acquisition capabilities to drive revenue growth for its entire U.S. brand portfolio.
Analyzing the Financial Structure
The acquisition is structured with a base transaction value of $8.8 million, composed of cash, debt, and locked-up equity. The total enterprise value could reach up to $19.5 million, but this maximum figure is heavily tied to future performance milestones. This performance-linked valuation ensures an attractive acquisition multiple for TRNR, expected to be less than 5.0x EBITDA before synergies.
A significant portion of the deal's value, over 50%, is contingent on Ergatta achieving specific EBITDA targets in 2026 and 2027. This structure minimizes upfront cash outlay, with less than 10% of the total value funded at closing. Consequently, TRNR anticipates the acquisition will be immediately cashflow positive, receiving more from Ergatta's operations in 2026 than the initial payment.
Leadership and Future Outlook
To ensure a seamless transition and continued innovation, Ergatta's founders and key management team have agreed to new employment arrangements. Co-founder and CEO Tom Aulet will continue to lead the business, providing stability and retaining the visionary leadership that built the platform. This continuity is crucial for executing the shared vision of integrating the gaming experience across TRNR's hardware ecosystem.
The combined entity is poised for significant growth, with pro forma revenue for 2026 projected to surpass $30 million. This merger creates a formidable competitor in the connected fitness market by pairing premium equipment with a proven, profitable content engine. Ergatta CEO Tom Aulet expressed enthusiasm for the opportunity to expand the gaming experience across a broader range of hardware brands.
The acquisition of Ergatta by Interactive Strength marks a pivotal consolidation within the connected fitness industry, creating a vertically integrated powerhouse. By combining TRNR's high-performance hardware with Ergatta's engaging and profitable software, the company is strongly positioned for future growth. This strategic union promises to deliver more immersive and effective workout experiences, setting a new standard for the market.