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Wellhub, a company that sells wellness benefits to employers, is acquiring Urban Sports Club for $600 million, CEO Cesar Carvalho tells Axios Pro.

Why it matters: The combined company is tapping a $500 billion market in the U.S.

Catch up quick: Wellhub's last reported valuation was $2.4 billion in August 2023 when it raised $85 million in Series F Funding led by EQT Growth. It rebranded from Gympass in April 2024.

Berlin-based Urban Sports Club had raised about $244 million prior to being acquired, per PitchBook. 

Zoom in: The deal, a mix of cash and equity, closed Aug. 29. Carvalho will lead the combined company, which will retain the Wellhub name.

The combined company will have 39,000 corporate clients operating in 18 countries.

The company's 5 million users will have access to approximately 97,000 different gyms, studios or wellness apps.

How it works: Wellhub sells the benefits to third parties such as self-insured employers or insurance companies, which then give access to users. Depending on the amount subsidized, users can pay an additional monthly fee to access certain services. 

What they're saying: "It's a very, very scattered space. There are many players offering point solutions, an app for this, an app for that, discounts in gyms here," Carvalho says.

"HR leaders are tired of pushing those point solutions that produce very low engagement and that don't move the needle," he continued.

Wellhub acquires Urban Sports Club for $600M

The combined company is tapping a $500 billion market in the U.S.

Illustration of the flex muscle emoji with a dollar sign tattoo.

Wellhub, a company that sells wellness benefits to employers, is acquiring Urban Sports Club for $600 million, CEO Cesar Carvalho tells Axios Pro.Why it matters: The combined company is tapping a <a class="gtmContentClick" data-vars-link-text="$500 billion market " data-vars-click-url="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-trends-defining-the-1-point-8-trillion-dollar-global-wellness-market-in-2024" data-vars-content-id="96038b47-718e-4c01-a662-6d685777131b" data-vars-headline="Wellhub acquires Urban Sports Club for $600M" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-trends-defining-the-1-point-8-trillion-dollar-global-wellness-market-in-2024" target="_blank">$500 billion market </a>in the U.S.

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Wellhub acquires Urban Sports Club for $600M

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