Lululemon today announced plans to acquire home exercise startup Mirror for $ 500 million. The fitness apparel company noted its plans by way of a press release, noting that it hopes to close the sale by the end of the second fiscal quarter of this year.
The deal comes at a time when home workout solutions are in high demand. The COVID-19 pandemic has severely limited workout options for many across the world, and the continued closure of gyms has prolonged the problem. Even when they begin to reopen in different locales, it seems many will be wary of returning to a potentially high-risk enclosed space, so long as the virus continues to spread.
“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,” CEO Calvin McDonald said in a press release tied to the news. “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 two companies have a relationship dating back to late last year, when Lululemon become an investor in Mirror. The $ 34 million Series B-1 brought in $ 34 million for the New York startup’s $ 1,495 reflective guided workout machine, valuing the startup at around $ 300 million. The company has raised a total of $ 74.8 million from investors, including Point72 Ventures, Spark Capital, First Round Capital, Lerer Hippeau and BoxGroup. Karlie Kloss and Creative Agency founder Kevin Huvane are also investors.
Mirror has been viewed by many as an alternative to Peloton’s wildly popular connected machines. There’s stiff competition in the category of connected fitness slabs, including Tonal and Tempo, but Mirror continues to the biggest name of the bunch. The company came out of stealth onstage at TechCrunch Disrupt in 2018.