Sport Alliance, a German provider of software for the fitness industry, is actively seeking acquisition opportunities, CFO and Managing Director Philipp Rusch told Mergermarket.
The company, backed by Boston-based sponsor PSG Equity since 2021, is primarily interested in acquiring mid-size operators of gym-management software in Europe, Rusch said, adding that it could also review targets in other international markets.
Such targets would typically generate annual revenue from high single- to low double-digit million euros, he added.
Sport Alliance typically uses external due diligence advisors to review acquisition targets, including legal, financial, tax and technology matters, and – depending on a target’s geography and size – sometimes also for commercial due diligence, Rusch said. EY is its long-term advisor for financial and tax due diligence, he added.
Moreover, the company has gained internal M&A knowledge over years of implementing its buy-and-build strategy, and it partners with its majority-owner PSG for M&A work, he said.
Rusch declined to disclose Sport Alliance’s revenue, but said that it has 400 employees and serves more than 10,000 sports facilities globally, including 14 of Europe’s top 30 fitness chains, following its PSG-backed acquisition of Polish peer PerfectGym in May 2024.
Law firms A&O Shearman and White & Case advised the buyside on the transaction, whose size was undisclosed, according to Mergermarket database.
Sport Alliance has access to both debt and equity to finance deals, and PSG is committed to supporting it and prepared to continue investing, depending also on immediate acquisition opportunities, Rusch said, without discussing how much it could spend on acquisitions.
PSG Equity is excited to work alongside Sport Alliance as it expands its offering and enters new geographic markets through an organic and inorganic growth strategy, director at the sponsor, Tobias Richter, said; and is well positioned to support he business following the final close of its more than EUR 2.6bn second European Fund last year.
Sport Alliance secured USD 100m investment from PSG in November 2023, in addition to its initial USD 65m investment, announced in August 2021. Sport Alliance’s minority shareholders include a private individual and the company’s management team, Rusch said.
Sport Alliance is on a strong growth trajectory and management is focused on delivering on its business plan, he said, adding that exit options are not under active consideration at present.
Richter did not discuss PSG Equity’s exit plans, but said that its investment into Sport Alliance represents a long-term partnership. The company has grown organically and through add-on acquisitions since PSG’s initial investment, and the sponsor continues to see a trajectory for Sport Alliance to accelerate its international growth ambitions and reinforce its presence in existing markets, he said. There is opportunity for growth-stage B2B software companies to scale internationally and capitalise on such as the ongoing digitisation of the European economy and industry consolidation, he added.
Sport Alliance has completed five acquisitions supported by PSG, in addition to three in previous years, Rusch said. The company’s flagship brands Magicline, which is an all-in-one gym software, and Finion FairPay, a debt collection service, were among those acquired in early 2010s, he said.
The business is also growing organically in Europe and on other international markets, Rusch said. It takes part in tenders globally when fitness firms review changing their software, he said, and is also growing alongside its customers, benefiting from their location growth.
Headquartered in Hamburg, Sport Alliance offers software solutions for fitness-studio management, financial services, and mobile applications, according to its website. It lists German brands including FitX, Fitness First (LifeFit Group), McFIT (RSG Group), clever fit, and Bodystreet among its clients.
