THE WHAT? Sportswear brand Lululemon has acquired fitness tech start-up Mirror in a deal worth $500 million, according to a report by the Financial Times.
THE DETAILS The deal will see Lululemon sell Mirror’s wall-mounted, internet-connected screens, in a bid to capitalize on the growing appetite for at-home workouts following COVID-19.
With the acquisition expected to close within two weeks, Lululemon is set to fund the deal through cash, as well as new and existing lending facilities.
THE WHY? According to Calvin McDonald, Lululemon’s Chief Executive, the market for at-home workouts is growing ‘exponentially.’
Planning to sell Mirror’s products in its stores and online, McDonald continued, “We see the size and potential [in] this space as being very dramatic.”
The deal is also said to highlight that corporate deals are still taking place, despite the ongoing uncertainty surrounding the long-term financial fall out of COVID-19.