A person wears a protective face mask outside Equinox Sports Club and gym on the Upper West Side as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on August 16, 2020 in New York City.
Noam Galai | Getty Images
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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Equinox is in talks to go public via Palihapitiya-backed SPAC, sources say