Interactive Strength, Inc. (TRNR), owner of the Wattbike, Forme and Clmbr connected fitness brands, has signed a definitive agreement to acquire Ergatta, Inc., maker of game-based connected fitness. The parties reportedly signed a letter of intent on January 9, 2026, and have been working on the binding definitive agreement since that time.
Ergatta, a Brooklyn, NY-based connected fitness company, “pioneered game-based fitness content, building a stable and cash-generating subscription business with industry-leading monthly net retention of more than 98 percent,” according to a media release.
TRNR reported that “Ergatta is expected to generate revenue of over $10 million in 2026, with roughly 70 percent from recurring subscriptions providing high visibility, and approximately a 30 percent EBITDA margin.” The company also “operates an asset-light business model that generates strong operational cash flow without requiring investment in inventory,” TRNR continued.
Assuming full achievement of the earn-outs, the maximum enterprise value would be $19.5 million and given the upper 2026 EBITDA threshold of approximately $4.0 million, TRNR said it expects the EBITDA multiple to be less than 5.0x before any group synergies. To ensure the valuation multiple is attractive to TRNR, 50 percent of the maximum enterprise valuation is contingent on Ergatta’s 2026 EBITDA, and 5 percent on 2027 EBITDA.
Less than 10 percent of the transaction value is being funded at closing, and TRNR said it “expects to receive more cash flow from Ergatta than the initial cash consideration paid in 2026.”
“The Founders of Ergatta have created a unique fitness experience and have built an attractive business that we expect to be accretive to TRNR immediately,” said TRNR CEO Trent Ward. “Ergatta’s best-in-class gaming experience has already been licensed by iFIT, one of the biggest fitness equipment brands in the world, and we plan to add the gaming experience to Wattbike and Clmbr. The Ergatta team also has strong customer acquisition capabilities, and we expect that they will be able to drive revenue growth in the U.S. for all of our brands with their help. As with all of our acquisitions, we are focused on minimizing near-term dilution and protecting downside with transaction valuations linked to future performance, while benefiting from additional upside from group synergies.”
Tom Aulet, co-founder and CEO of Ergatta added, “Our team is very proud that we’ve built the most engaging fitness content platform in the world, and we’ve done it profitably. Joining TRNR provides us the opportunity to grow Ergatta and also the Ergatta gaming experience across other hardware brands. This is the right next step for our business, and we are looking forward to completing the transaction quickly.”
Transaction Structure
TRNR will acquire 100 percent of Ergatta through a combination of cash, debt, stock, and future contingent consideration. TRNR said it expects a “quick, efficient close in first quarter 2026, subject to completing customary closing requirements.” The consideration is structured as follows:
- The base transaction value of $8.8 million comprises $1.8 million in cash at close, $1.8 million in debt, and $5.3 million in equity that is locked up until May 2027.
- An additional $9.8 million could be earned by Ergatta, achieving roughly $4.0 million in 2026 EBITDA, payable in May 2027 as $3.5 million in cash and $6.3 million in equity.
- Up to an additional $1.0 million in equity could be earned based on achieving approximately $4.8 million in 2027 EBITDA.
- TRNR expects to receive more cash flow from Ergatta in 2026 than the initial cash consideration paid. The initial cash consideration at closing will be funded through TRNR’s existing financing facilities.
- Ergatta’s founders and key management team have agreed to employment arrangements and are expected to continue leading the business post-acquisition.
Interactive Strength said it expects to provide additional details regarding the transaction following the closing.
Image courtesy Ergatta
