Fitness and athletic apparel firm Lululemon will acquire at-home fitness tech firm Mirror in a deal worth around US$500m (€446m, £407m).
Mirror is an interactive workout platform which provides live and on-demand fitness classes – as well as personal training – in a variety of workout genres.
At the core of the Mirror concept is a reflective display which retails at US$1,495, allowing subscribers to access the online exercise sessions.
Marketed as an interactive home gym – and seen as a challenger to the wildly popular indoor cycling operators such as Peloton – Mirror was founded by Brynn Putnam, creator of Refine Method.
The deal comes as the COVID-19 lockdowns have caused an explosion in demand for at-home fitness globally – a market that Lululemon now wants to tap into.
"In 2019, we detailed our vision to be the experiential brand that ignites a community of people living the sweatlife through sweat, grow and connect," said Calvin McDonald, Lululemon CEO.
"The acquisition of Mirror is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities, and deepen our roots in the sweatlife.
"We look forward to learning from and working with Brynn Putnam and the team at Mirror to accelerate the growth of personalized in-home fitness.”
The purchase price of US$500m is expected to be paid from the company’s primary sources of liquidity, which include over $800m in cash, its existing $400m revolving credit facility, and a new one-year, $300m revolving credit facility.
Following the completion of the transaction, which is expected to take place over the next months, MIRROR will operate as a standalone company within Lululemon.
Brynn Putnam will continue as Mirror’s CEO, reporting to McDonald.
Commenting on the deal, Putnam said: “As part of Lululemon, Mirror can further strengthen its position and accelerate its growth by leveraging Lululemon’s deep relationships with its guests, ambassadors and communities, as well as the company’s infrastructure, including its store network and e-commerce channels, to acquire new users.”
The deal builds on an existing partnership between the two companies, which began in with Lululemon making an initial investment in Mirror. The firms also have a content partnership, which includes Lululemon providing sweat and meditation classes to the Mirror platform.