Activewear and lifestyle brand, Lululemon has struk a deal to acquire in-home fitness company Mirror.
The $500 million acquisition will enable the athleticwear retailer to roll out an interactive workout platform featuring live and on-demand classes to new and current Lululemon customers.
Launched in 2018, the brand offers weekly live classes and thousands of on-demand workouts, including one-on-one personal training.
Lululemon has said the new deal will allow the company to boost its business through omni-guest experiences, such as digital services like personalised in-home workouts.
CEO Calvin McDonald, said in a news statement: “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. 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 is thought to be paid from the company’s primary sources of liquidity, which includes over $800 million in cash, its existing $400 million revolving credit facility, as well as a new one-year $300 million revolving credit facility.
Initially, Lululemon invested in Mirror last year, in a deal which also included content partnership.
One the deal is completed, Mirror will operate as a standalone company within Lululemon.
In its last quarter, the retailer reported a 68% rise (70% in constant dollars) and representing 54% of total net revenue, compared to only 26.8% in the same period in the previous year.
For the first quarter ended 3 May 2020, the company reported a total net revenue of $652 million, and a 17% fall compared to $782.3 million in the prior-year period.