The Rise of Low-Cost Gyms in Spain: A New Era with VivaGym and Synergym

The low-cost gym market in Spain is witnessing a significant transformation, marked by a fierce competition for leadership. At the forefront of this battle are two notable players: VivaGym and Synergym. Both companies, rooted in Malaga, are now set to reshape the fitness landscape in Spain and Portugal through a strategic merger.

A Game-Changing Acquisition

On Monday, VivaGym announced its acquisition of Synergym, a move that will create a fitness powerhouse boasting over 450 centers across mainland Spain and Portugal. This merger combines VivaGym’s 290 locations with Synergym’s more than 160, establishing a formidable presence in the low-cost gym sector.

While the deal is still pending regulatory approval, it promises to merge two distinct business models into a large-scale sports and wellness platform. Founded in 2010 and 2013 respectively, both companies have charted different paths to growth. Synergym has focused on organic expansion, while VivaGym has pursued a more aggressive acquisition strategy, bringing several operators into its fold, including Smartfit and Macrofit.

Strategic Vision for Expansion

The merger is seen as a “key milestone” in VivaGym’s ambitious expansion plan, aimed at solidifying its dominance in the fitness sector. According to sources close to the deal, the primary goal is to create a robust platform that can invest in innovation, enhance member experiences, and generate long-term value.

Cristina Burzako, CEO of VivaGym, expressed her enthusiasm about the merger, stating, “This is a pivotal moment for VivaGym. This move builds on the robust growth we are already experiencing and allows us to accelerate our expansion strategy.” She emphasized that the merger will broaden their reach and improve service for members across the Iberian Peninsula.

Enhancing Member Experience

VivaGym’s mission is to provide an accessible, high-quality fitness experience. The merger with Synergym is expected to significantly enhance their capabilities, allowing them to better serve their growing member base. Burzako noted, “With a wider network and expanded capabilities, we believe we are ideally positioned to further enhance our offering and drive the next phase of our growth.”

This focus on member experience is crucial in a market where consumers increasingly seek flexible and affordable fitness options. The merger aims to leverage the strengths of both companies to create a more comprehensive and appealing fitness environment.

The Role of Providence Fund

Facilitating this ambitious expansion is the venture capital fund Providence. CEO Robert Sudo highlighted that the acquisition aligns with their strategy of building large-scale platforms in high-growth sectors. He stated, “VivaGym has demonstrated its ability to expand, and we believe this acquisition further strengthens its position in the local market.”

Sudo pointed out the growing societal trend towards health and wellness, emphasizing the increasing demand for accessible fitness options. He sees significant potential for further growth, both organically and through targeted opportunities, and looks forward to collaborating with Burzako and her team.

Synergym’s Journey and Future

Jordi Bella, CEO of Synergym, reflected on the merger as a natural progression following a successful expansion period. “Joining VivaGym is the natural next step after this journey that began in 2013,” he stated. Bella’s vision remains focused on improving the lives of thousands through high-quality clubs equipped with specialized fitness areas and highly qualified staff.

Expert Guidance in the Merger

Both companies have enlisted the expertise of leading consulting firms to navigate this significant transition. VivaGym has received advice from Boston Consulting Group, Deloitte, Uria Menendez, and A&O Shearman, while Synergym has been supported by Growth Partner, Oxy Capital, and All Seas Capital.

This collaboration with industry experts underscores the seriousness of the merger and the commitment of both companies to ensure a smooth integration process.

The merger between VivaGym and Synergym marks a pivotal moment in the low-cost gym market in Spain. With a shared vision for growth and a commitment to enhancing member experiences, the newly formed entity is poised to lead the charge in the evolving fitness landscape.