Providence Strategic Growth backs Sport Alliance with EUR 60m

Following the investment, PSG intends to support the company's international expansion into strategic growth markets, as well as product and team development.

PSG said in a statement that the company has performed well and has continued to grow in spite of the challenges faced by gyms and fitness studios over the course of the coronavirus pandemic.

The GP is deploying equity via its Europe-focused fund, Providence Strategic Growth Europe, which held a final close in February 2021 on EUR 1.2bn, surpassing its EUR 1bn target. The vehicle targets lower-mid-market software and technology-enabled companies, focusing on those operating in the media and telecommunications sectors. The fund deploys equity tickets of EUR 5m-100m, generally making buyout investments in companies with revenues of EUR 10-50m.

The fund has made two investments in Germany to date, according to Unquote Data; the firm acquired billing software Billwek in May 2021 and made a growth investment in email security and data protection software Hornet Security in January.

PSG launched Providence Strategic Growth V in April 2021, according to Unquote Data. The fund is expected to follow the strategy of its predecessor, which held a final close on USD 2bn in September 2019 and backs North American and European lower-mid-market software and technology companies, investing USD 5m-75m per deal.

The digitalisation of the fitness industry has become a key theme during the pandemic. While many fitness chains saw a slump in revenues, digital businesses in the sector benefited. In October 2020, Oakley Capital acquired online fitness and nutrition business 7NXT in an SBO from Crosslantic Capital; a spokesperson for the vendor told Unquote at the time that the business had seen a successful year, while Oakley said in a statement that it intends to support the further development of 7NXT's online business.

Company
Sport Alliance was founded in 2011 and provides software for gyms and fitness studios that aims to allow them to digitalise their business processes. The company currently comprises four software units: Magicline, which provides studio management functions and a linked app for gym and studio members; Eurofit24, which provides payment services; Mysports, which provides booking, training and engagement functions for gym users and trainers; and bedarf.de, which allows gyms to manage their logistics and supply chains.

The company's software is used in seven countries and in 5,232 studios, according to its website. Sport Alliance employs 210 staff and is headquartered in Hamburg.

People
Providence Strategic Growth – Skip Besthoff (managing director); Edd Hughes (managing director).
Sport Alliance – Daniel Hanelt (CEO).

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