MINDBODY, San Luis Obispo, California, announced on March 12 it has entered into an agreement to purchase cloud-based business management company Booker Software, New York, for $150 million in cash and unvested option awards. The deal is slated to close sometime in the second quarter of 2018.
The acquisition will add approximately 10,000 salons and spas (Booker's primary market) to the MINDBODY client portfolio, as well as Frederick, Booker's automated marketing software.
“MINDBODY and Booker power the local businesses that help tens of millions of people lead healthier, happier lives,” MINDBODY CEO Rick Stollmeyer said in a media release. “By combining our technology and teams, we will help our customers grow by connecting them to even larger consumer audiences. Our intention is to rapidly expand our wellness and beauty platform by delivering more value to customers, consumers and partners alike.”
Booker was founded in 2010 and generated approximately $25 million in subscription and payments revenue in 2017, in addition to $1.4 billion in payments volume. The company currently serves more than 11,100 high-end salons and spas and is used by more than 130,000 professionals. Booker's offices are in New York City and Scottsdale, Arizona.
On Feb. 20, MINDBODY also announced it acquired Atlanta-based fitness tracking company FitMetrix for an undisclosed amount.
In March 2017, MINDBODY acquired San Diego-based management solutions startup Lymber Wellness for an undisclosed amount.
Stollmeyer called 2017 the "most successful year in MINDBODY history," after the company reported $182.6 million in annual revenue. This represents a 31 percent increase from 2016.
"These results all point to the growing momentum of our transaction-enabled marketplace, which focuses on adding the right customers to our platform and promoting their offerings to an ever larger consumer audience," Stollmeyer said of the company's recent growth.