Interactive Strength Inc. ( TRNR ) shares are surging premarket on Thursday after the company inked a non-binding letter of intent and exclusivity agreement to acquire a connected-fitness equipment company.

The target company has over $40 million in revenue and positive EBITDA, in a 100% equity consideration transaction.

This acquisition supports its strategy of leveraging its public listing to acquire profitable, high-growth businesses in the fragmented global health & wellness market.

The target company’s complementary products and customer base will expand TRNR’s equipment and brand offerings.

Founder-led and profitable, with over $40 million in annual revenue, the potential buyout will significantly boost Interactive Strength’s top and bottom lines.

No cash will be paid to the target’s shareholders, who will exchange their equity for long-term stakes in the combined entity.

The acquisition is projected to close without the need for additional financing and enhance TRNR’s global product offerings.

The transaction is expected to close in the first quarter of 2025 and be accretive to TRNR’s financial results.

Last week, the company announced it regained Nasdaq compliance status regarding listing standards.

Price Action: TRNR shares are up 7.31% at $3.23 premarket at the last check Thursday.

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