Equinox Group is in talks to go public via Chamath Palihapitiya-backed SPAC, sources say


An individual wears a protecting face masks outdoors Equinox Sports Club and fitness center on the Upper West Side as the town continues Phase four of re-opening following restrictions imposed to gradual the unfold 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 accustomed to the matter advised CNBC’s David Faber.

The deal is concentrating on a valuation of 22 instances estimated EBITDA of $320 million, in accordance to the sources, with the PIPE funding probably reaching $2 billion. Overall, the corporate is concentrating on a valuation north of $7 billion.

Palihapitiya’s Social Capital VI is the particular goal acquisition firm, or SPAC, that might take the high-end health chain public by a reverse merger. The deal was shopped to plenty of different potential SPAC sponsors.

The health firm, which additionally owns SoulCycle and Blink Fitness, amongst others, has been hit onerous by the pandemic with some golf equipment pressured to shut.

The Social Capital Hedosophia Holdings Corp. VI, which trades below the ticker IPOF, slid roughly 2% on Wednesday. For the yr, shares are down 17%.

Become a wiser investor with CNBC Pro
Get inventory picks, analyst calls, unique interviews and entry to CNBC TV. 
Sign up to begin a free trial today

Source link