Interactive Strength Inc. (TRNR) confirmed that it has entered into a binding transaction agreement to acquire Sportstech Brands Holding GmbH, a leading European home‑fitness and wellness company. The agreement, signed in February 2025, was announced on December 29 2025 and includes an initial investment of $15 million in non‑voting convertible preferred stock, with the possibility of up to $40 million in earnouts tied to future EBITDA performance. A working‑capital loan of approximately $6.6 million, due on December 30 2025, has been advanced to Sportstech to support integration activities and is secured by Sportstech’s shares and a personal guarantee from its CEO.
The deal is part of TRNR’s strategy to expand its footprint in Europe and to add Sportstech’s direct‑to‑consumer brand portfolio to its growing suite of connected‑fitness offerings. Sportstech, which generated roughly $13 million in revenue in the third quarter of 2025, has a strong market position in Europe and has grown profitably without external capital. The transaction is expected to create synergies in product development, distribution, and data analytics, potentially boosting TRNR’s pro‑forma revenue by more than $50 million in 2025.
However, the announcement was accompanied by a dispute. Sportstech’s CEO, Ali Ahmad, stated that negotiations had been suspended effective November 27 2025 due to disagreements on key economic and strategic terms. TRNR’s CEO, Trent Ward, countered that a binding agreement existed and that the company was prepared to close, calling Sportstech’s statement “misleading” and a tactic to delay the process. The loan’s due date, coupled with the dispute, raises the risk of default and potential legal action, as TRNR has secured the loan with shares and a personal guarantee.
TRNR’s financial position underscores the stakes of the transaction. In the third quarter of 2025, the company reported revenue of $4.8 million and a net loss of $5.2 million, with cash and equivalents of $0.8 million and convertible notes payable of $32.36 million. The $6.6 million loan represents a significant portion of TRNR’s market capitalization and cash reserves, making the potential loss of the loan a material risk. Sportstech’s strong performance, with third‑quarter revenue of $13 million and a growing EBITDA margin, highlights the attractiveness of the deal for TRNR’s growth ambitions.
The dispute and the looming loan deadline have significant implications for TRNR’s strategic trajectory. If the acquisition fails, TRNR could lose a substantial cash infusion and miss the opportunity to expand into the European market, potentially slowing its growth plans. The company’s limited liquidity and high debt load mean that any default on the loan could threaten its financial stability. Management’s statements reflect frustration and a determination to enforce the agreement, while Sportstech’s position signals a willingness to renegotiate terms that better align with its valuation and strategic priorities.
The announcement has generated heightened uncertainty among investors, reflecting concerns over the deal’s completion and the potential impact on TRNR’s financial health. The dispute over the loan and the status of the agreement has become a focal point for market participants evaluating the company’s future prospects.
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