Athletic wear retailer Lululemon is acquiring startup Mirror for $500 million in a shift to capitalize on the boom in dwelling workout options.
Mirror sells an interactive monitor — which fees just about $1,500 right before tax and installation charges, in addition ongoing subscription charges of $39 per month — by means of which consumers can access its on-need or stay fitness courses.
Lululemon brought meditation courses to the Mirror platform after investing in the startup very last year. It reported the acquisition of Mirror would improve its “digital sweatlife offerings and deliver immersive and customized in-dwelling sweat and mindfulness options to new and existing Lululemon company.”
“In 2019, we thorough our eyesight to be the experiential brand name that ignites a group of people today dwelling the sweatlife by means of sweat, grow and hook up,” Lululemon CEO Calvin McDonald reported in a information release. “The acquisition of Mirror is an exciting possibility to create on that eyesight, enhance our electronic and interactive abilities, and deepen our roots in the sweatlife.”
As TechCrunch reports, the deal “comes at a time when dwelling workout options are in significant need. The COVID-19 pandemic has severely constrained workout solutions for many across the globe, and the ongoing closure of fitness centers has prolonged the issue.”
“Even when they begin to reopen in distinct locales, it seems many will be wary of returning to a most likely significant-chance enclosed place, so extensive as the virus carries on to distribute,” TechCrunch included.
Mirror was established by Brynn Putnam, a previous dancer for the New York City Ballet, after she struggled to in good shape workout courses into her agenda as a pregnant fitness entrepreneur. The business raised $34 million in a funding spherical very last year, valuing it at around $three hundred million.
On information of the deal, Lululemon’s shares jumped 5.2% to $309.sixty five in trading Tuesday.
“While Mirror is somewhat little these days, it ought to increase Lululemon’s head share although also getting incremental to Lululemon’s extensive-phrase growth targets,” Needham analyst Rick Patel reported in a client observe, including, “Lululemon is thinking outside the box and shifting to the place the puck is heading.”