Markets

Equinox Group Is in Talks to Go Public Via Chamath Palihapitiya-Backed SPAC, Sources Say

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  • Equinox is in talks to go public via a merger with a SPAC backed by Chamath Palihapitiya, according to sources familiar with the matter.
  • The fitness group, which also owns SoulCycle and Blink Fitness, has been hit hard by the pandemic.
  • Equinox is seeking a valuation above $7 billion, accord to the sources.

Equinox is in talks to go public via a SPAC headed by Chamath Palihapitiya, sources familiar with the matter told CNBC's David Faber.

The deal is targeting a valuation of 22 times estimated EBITDA of $320 million, according to the sources, with the PIPE investment potentially reaching $2 billion. Overall, the company is targeting a valuation north of $7 billion.

Palihapitiya's Social Capital VI is the special purpose acquisition company, or SPAC, that would take the high-end fitness chain public through a reverse merger. The deal was shopped to a number of other potential SPAC sponsors.

The fitness company, which also owns SoulCycle and Blink Fitness, among others, has been hit hard by the pandemic with some clubs forced to close.

The Social Capital Hedosophia Holdings Corp. VI, which trades under the ticker IPOF, slid roughly 2% on Wednesday. For the year, shares are down 17%.

Bloomberg first reported the potential deal.

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