Interactive Strength to Acquire Ergatta for $8.8M, Boost 2026 Revenue Guidance Over $30M
Interactive Strength agreed to acquire Ergatta for base enterprise value $8.8M with up to $19.5M in earnouts tied to 2026–27 EBITDA thresholds of ~$4M and $4.8M respectively. The deal, closing in Q1 2026, boosts pro forma revenue guidance to over $30M in 2026, with 2025 pro forma revenue exceeding $20M.
1. Acquisition Announcement
Interactive Strength signed a definitive agreement to acquire Ergatta, a Brooklyn-based connected fitness provider with a subscription business boasting over 98% monthly net retention. The deal is slated to close by Q1 2026.
2. Deal Valuation and Structure
The base enterprise value is $8.8M, including $1.8M cash at close, $1.8M debt assumption, and $5.3M equity locked until May 2027. Maximum enterprise value reaches $19.5M, with earnouts tied to future EBITDA performance.
3. Earnout Contingencies
Fifty percent of the additional valuation depends on Ergatta achieving approximately $4.0M in 2026 EBITDA, payable in May 2027 as $3.5M cash and $6.3M equity. A further $1M in equity is available if Ergatta hits roughly $4.8M EBITDA in 2027.
4. Revenue and Outlook
Interactive Strength expects Ergatta’s integration to boost 2026 pro forma revenue guidance above $30M, with Ergatta alone contributing over $10M. Full-year 2025 pro forma revenue is projected to exceed $20M, nearly quadrupling 2024 figures.