Sportstech Halts U.S. Entry as Interactive Strength Merger Collapses

BERLIN, Germany – December 29, 2025 – A planned blockbuster acquisition in the global fitness technology sector has collapsed, leaving the strategic roadmaps of two companies in question and sparking a public dispute. German home fitness powerhouse Sportstech Brands Holding GmbH announced it has suspended year-long acquisition discussions with U.S.-based Interactive Strength, Inc. (Nasdaq: TRNR), a move that indefinitely postpones Sportstech’s highly anticipated entry into the American market.

In a press release dated December 30, 2025, Sportstech stated that negotiations, which began in late 2024, were suspended on November 27, 2025. The company cited an inability to “agree on key economic and strategic terms” as the reason for the breakdown, adding that “at present, there is no mutually agreed basis to advance the process toward a binding agreement.”

The fallout was immediate. Sportstech confirmed its planned market entry into the United States, which was an “integral part” of the deal, would not proceed in its originally intended form or timeframe. This unraveling highlights the inherent complexities of cross-border M&A in the fast-moving fitness tech industry, where company valuations and strategic priorities can shift rapidly.

A Deal Derailed by Public Disagreement

While Sportstech's announcement pointed to a mutual impasse, the narrative quickly became contentious. Interactive Strength publicly contested the German company’s characterization of the events. In a statement, TRNR's CEO, Trent Ward, asserted that a “binding transaction agreement” had been signed in February 2025. He suggested that Sportstech was experiencing “seller’s remorse” following a period of strong business performance, a surge he attributed in part to a working capital loan provided by Interactive Strength during the acquisition process.

Interactive Strength maintained that all due diligence and closing conditions were met as of November and stated it remained prepared to close the deal on the previously negotiated terms. This public clash suggests the disagreements run deeper than typical negotiation hurdles, pointing to a fundamental schism over the deal's value and structure as Sportstech's financial fortunes improved throughout 2025.

The market’s reaction has mirrored the deal's turbulent journey. When the all-stock acquisition was first announced in February 2025, Interactive Strength's stock (TRNR) soared by over 60%, signaling strong investor approval for the strategic combination. Conversely, on November 27, the day negotiations were officially suspended, the stock plummeted by more than 16%, erasing a significant portion of its earlier gains and reflecting investor anxiety over the company’s path forward.

Diverging Paths for Future Growth

The collapse of the acquisition forces both companies to pivot and pursue starkly different strategies. For Interactive Strength, the impact is particularly acute. The company has built its growth strategy around making accretive acquisitions of profitable, high-growth businesses in the fragmented global wellness market. The Sportstech deal was the cornerstone of this plan.

Interactive Strength had reaffirmed revenue guidance of over $80 million for 2025, a figure that was explicitly contingent on the finalization of the acquisition. Sportstech alone was projected to contribute over $40 million to this pro forma revenue, a massive injection compared to TRNR's $5 million revenue in 2024. Without Sportstech, Interactive Strength faces a significant revenue gap and must now seek alternative avenues for growth to satisfy its ambitious targets and restore investor confidence.

In contrast, Sportstech is framing the breakdown as a testament to its own burgeoning strength. The company reported a “very strong business year in 2025,” with revenues for the last twelve months through September 2025 exceeding €50 million alongside more than €5 million in EBITDA. Its revenue growth accelerated in the third quarter to 24% year-over-year, and it projects growth to surpass 30% in the fourth quarter. Buoyed by this performance, Sportstech expressed confidence that its strengthened financial base provides “mid-term flexibility to realize a later market entry into the U.S. market” organically.

Navigating the Crowded U.S. Fitness Arena

While Sportstech projects confidence, its postponed U.S. launch means it must eventually tackle one of the world's most competitive consumer markets without the strategic support of an established American partner. The U.S. home fitness landscape is a crowded field dominated by established giants and agile innovators. Brands like Peloton, Nautilus, Tonal, and Hydrow have already captured significant market share and built strong brand loyalty.

The market, valued at over $4.8 billion in 2022 and projected to reach $8.5 billion by 2030, continues to expand, driven by health consciousness and the convenience of at-home, tech-enabled workouts. However, the barriers to entry are high. Any new player, even one with a strong European track record like Sportstech, faces the immense challenge of building brand recognition, establishing complex distribution and supply chains, and differentiating its products in a sector where consumers already face a dizzying array of choices and potential subscription fatigue.

The acquisition by Interactive Strength, which operates brands like CLMBR and FORME, was intended to be a strategic shortcut, providing immediate market access and an existing operational footprint. Now, Sportstech must weigh the costs and complexities of building its U.S. presence from the ground up against finding a new partner, a process that could take years.

This failed merger serves as a cautionary tale for the broader fitness technology sector. It underscores how difficult it can be to finalize deals, even after initial agreements are reached, especially when the target company's performance dramatically improves during the closing period. As the industry continues its trajectory of high growth and consolidation, the ability to successfully navigate valuation, integration, and strategic alignment will remain the ultimate test for companies seeking growth through acquisition.