Mindbody has agreed to pay $150 million to acquire Booker Software, a cloud software provider for salons and spas.
Booker, founded in 2010, provides salons with online booking, staff management and point-of-sale technology. The business processed more than $1.4 billion in payments during 2017, and had $25 million in subscriptions and payments revenue for the year.
The deal will add about 10,000 salons and spas to the Mindbody marketplace. As of now, Mindbody mainly provides technology for boutique fitness studios. The business will also acquire Frederick, an automated marketing software for wellness businesses.
“By combining our technology and teams, we will help our customers grow by connecting them to even larger consumer audiences,” said Rick Stollmeyer, Mindbody chief executive officer, in a statement. “Our intention is to rapidly expand our wellness and beauty platform by delivering more value to customers, consumers and partners alike.”
There has been a years-long streak of M&A activity in the beauty sector. The Mindbody acquisition underscores a shift that industry insiders have predicted in beauty deal trends — M&A will not be reserved for beauty brands anymore, but extend to other types of companies and service providers in the sector.
Outside of Mindbody, examples of the trend lie with beauty companies like Shiseido and Coty Inc. Shiseido has recently acquired a series of technology companies, including Match Co and Giaran, as well as an agency called Jwalk. Coty too, has acquired outside of traditional beauty brands with its deal for digital agency Beamly.