Nautilus Inc. announced that it has entered into a definitive agreement to acquire VAY, a motion technology company. The acquisition gives Nautilus the ability to scale its JRNY digital platform with additional technologies to advance its motion tracking capabilities for real-time data analysis during workouts.
Nautilus JRNY members will be able to use this technology with Nautilus’ existing and future Bowflex and Schwinn strength and cardio products, in addition to off-product workouts, such as body weight, yoga and floor exercises.
“As part of our North Star plan, we identified a need in the market for highly accurate form tracking and coaching. We believe that incorporating VAY’s technology into JRNY is the fastest way to accelerate our technical roadmap to deliver superior connected fitness experiences for our members and enhance the platform’s progress as a highly personalized one-on-one digital fitness coach. This acquisition directly supports our aim to continue evolving into a more digital company and helps us advance our software development capabilities,” said Jim Barr, CEO, Nautilus. “We also believe that this partnership will fundamentally change at-home fitness by helping customers reach their goals in a more personalized and scientific way.”
VAY’s computer software analyzes movements and provides real-time feedback on exercises for repetition counting, form tracking and customized coaching. Its management and technical teams will join Nautilus as part of its software development group.
VAY has an existing partnership with ETH Zurich, a science and technology university. This partnership will continue through a collaboration with the ETH AI Center and the formation of a dedicated center to drive personalized fitness.
“We are excited to join the Nautilus team as we continue to create a truly differentiated experience for connected at-home fitness. As part of Nautilus, we can scale this offering to a larger consumer base than ever before,” said Joel Roos, Founder & CEO , VAY. “There is much opportunity ahead to drive continued innovation. We share the same vision and values and will be able to capture future growth opportunities in ways we couldn’t do alone. Together we can define the future of the industry.”
The financial terms of the transaction were not disclosed. The transaction is expected to close in the coming weeks pending customary closing conditions.
The acquisition supports Nautilus’ North Star: Journey to 2026 strategy, which it spoke about in March 2021 at its Investor Day. The goal of the strategy is sustainable growth and to “digitally transform the company, including scaling its JRNY digital fitness platform.”
The company continues to expect its digital subscription business to represent approximately 20 percent of total revenue and is targeting to have two million JRNY members by FYE 2026. The VAY transaction is to give Nautilus the tools to advance its operating model for a more balanced portfolio of products and services with the expectation to yield higher recurring revenue and long-term profit growth.
The company expects consumer preferences to continue to support the connected at-home fitness market. It estimates that 25 percent of former gym users will not return to the gym but rather embrace the work-from-anywhere model.
Photo courtesy Nautilus