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

A person wears a protective face mask outside the Equinox Sports Club and Gym on the Upper West Side as the city resumes Phase 4 reopening after restrictions were imposed in New York City on August 16, 2020 to contain the spread of the coronavirus slow it down.

Noam Galai | Getty Images

Equinox is in talks to go public through a SPAC led by Chamath Palihapitiya, sources familiar with the matter said CNBC’s David Faber.

The deal targets a valuation of 22 times estimated EBITDA of $ 320 million, with the PIPE investment potentially reaching $ 2 billion. Overall, the company is aiming for a valuation north of $ 7 billion.

Palihapitiya’s Social Capital VI is the Special Purpose Acquisition Company (SPAC) that would bring the high-end fitness chain to the public through a reverse merger. The deal was sold to a number of other potential SPAC sponsors.

The fitness company, which includes SoulCycle and Blink Fitness, was hit hard by the pandemic and some clubs had to close.

Social Capital Hedosophia Holdings Corp. VI, trading under the ticker IPOF, was down around 2% on Wednesday. For the year, stocks are down 17%.

Bloomberg first reported on the potential deal.

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