Lululemon is acquiring the in-home fitness company Mirror for $500 million, the retailer announced Monday, marking its first acquisition — a bet that more people are going to be pivoting to exercise at their homes.
Lululemon shares were up almost 4% in after-hours trading.
Following the closing of the deal, Mirror will run as a standalone company within Lululemon, and its current CEO, Brynn Putnam, will continue as Mirror’s CEO, reporting to Lululemon Chief Executive Calvin McDonald, the companies said.
The deal is expected to close in the second quarter of fiscal 2020.
Lululemon first invested an undisclosed amount in Mirror in mid-2019.
The business offers live classes weekly through its mirror device in addition to on-demand workouts and one-on-one personal training sessions. Mirror first launched in 2018. Its mirror retails for $1,495.
In 2019, McDonald said Lululemon detailed its vision to be a brand for people to connect “through sweat.”
“The acquisition of Mirror is an exciting opportunity to build upon that vision,” he said Monday.
This is a developing story. Please check back for updates.