Interactive Strength acquires 99.8% stake in Sportstech

Interactive Strength, Inc., a leader in electronic and electrical equipment manufacturing, has entered into a significant agreement to acquire Sportstech Brands Holding GmbH. Announced on Monday, the transaction includes an initial investment of $15 million and three optional investment tranches, subject to performance metrics.

The initial investment will give Interactive Strength approximately a 99.8% stake in Sportstech through a capital increase with the issuance of Series D Non-voting Convertible Preferred Stock. While the company's financial health score is currently rated as weak by InvestingPro, analysts anticipate 15.11% revenue growth for fiscal year 2024. The conversion of this investment into common stock will be set on June 15, 2026, based on a volume-weighted average price from the preceding 20 trading days, adhering to the Nasdaq Minimum Price Rule.

The deal also outlines three optional investments, A, B, and C, with capital increases up to $10 million, $10 million, and $20 million respectively. These investments are contingent on Sportstech's EBITDA performance in the EU and the US and will be vested based on specific EBITDA targets multiplied by predetermined factors. The pricing for these optional investments will similarly be determined on June 15 of 2026 and 2027, using the volume-weighted average price method in compliance with Nasdaq rules.

In conjunction with the initial investment's closure, Mr. Ali Ahmad, the sole shareholder of Sportstech, is set to join the Board of Directors of Interactive Strength.

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