Fitness company Tivity Health to be bought by Stone Point Capital for $2 bln

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April 5 (Reuters) – Exercise firm Tivity Well being (TVTY.O) claimed on Tuesday it had agreed to be acquired and taken private by investment decision organization Stone Position Money for $2 billion in hard cash.

Tivity said its stockholders would get $32.50 for each share, which is a close to 1% premium to the stock’s closing price tag of $32.25 on Monday.

Tivity’s shares rose .5% to $32.42 in morning trade.

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The corporation owns SilverSneakers, a conditioning system supplied in-particular person and almost for folks qualified for Medicare – the U.S. government’s professional medical coverage method for folks age 65 and older and the disabled.

SilverSneakers was founded in 1992 and Tivity has, in recent months, been hoping to deliver far more virtual offerings, generating ‘live with instructor’ courses accessible for users wishing to maintain physical exercise from the consolation of their homes.

Tivity reported it initiated a evaluation of strategic choices after receiving an unsolicited proposal from Stone Point and was in conversations with several potential potential buyers, before eventually deciding to be obtained by the non-public equity firm.

“Stone Position acknowledges the benefit of our manufacturers, our very well-regarded senior exercise and overall health advancement platform,” claimed Richard Ashworth, Chief Govt Officer of Tivity Health and fitness.

He would continue to be the CEO of Tivity Wellbeing just after the completion of the offer, envisioned in or prior to the 3rd quarter, the corporation explained.

Lazard was the distinctive monetary adviser to Tivity Health even though Truist Securities served as exclusive fiscal adviser to Stone Point on the offer.

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Reporting by Amruta Khandekar Modifying by Amy Caren Daniel and Krishna Chandra Eluri

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