Fitness company ICON valued at over $7 billion after new funding round
- Dan Primack, author of Axios Pro Rata
Illustration: Sarah Grillo/Axios
ICON, a Utah-based connected fitness company whose brands include NordicTrack, raised $200 million in growth equity funding at a valuation north of $7 billion. L Catterton led, and was joined by Pamplona Capital Management.
Why it matters: L Catterton previously backed rival Peloton, holding a 5.4% stake at the time of IPO (it since appears to have divested).
Between the lines: A source familiar with L Catterton's thinking says that the firm doesn't view the two companies as direct competitors because ICON has a broader product portfolio — particularly in terms of price points — although Peloton seems to disagree, having recently sued ICON for patent infringement.
The bottom line: "The owner of NordicTrack, ProForm and Freemotion brands, which also operates the on-demand streaming platform iFit, is profitable and posted revenue of more than $1 billion in the 12 months through September, the company said Monday. The latest round ... is a precursor to a potential initial public offering within the next year." — Gillian Tan, Bloomberg