Lululemon Athletica Inc. will pay $500 million to acquire Mirror, an in-home workout platform with live and on-demand classes offered through an interactive smart mirror, Lululemon announced on June 29.
The purchase price is expected to be paid from Lululemon’s primary sources of liquidity, which include more than $800 million in cash, its existing $400 million revolving credit facility, and a new one-year $300 million revolving credit facility.
Lululemon became an investor in Mirror in mid-2019. With that investment, the two created a content partnership that brought sweat and meditation classes to the Mirror platform by Lululemon’s global ambassadors. This acquisition will further expand the content creation partnership between the two brands, according to the announcement.
After completion of the transaction, which is expected by second quarter of fiscal 2020, Mirror will operate as a standalone company within Lululemon. Mirror CEO Brynn Putnam, who is a former Lululemon global ambassador, will continue as Mirror ‘s CEO, reporting to Lululemon CEO Calvin McDonald.
Mirror’s platform and content will help Lululemon drive business through omni guest experiences, bolstering the company’s digital Sweatlife offerings for new and existing customers, the company said in the announcement.
“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,” McDonald said in the media release. “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.”
Mirror offers weekly live classes and thousands of on-demand workouts as well as one-on-one personal training. Mirror has seen rapid growth and strong engagement since it launched in 2018 as demand for in-home fitness offerings continue to increase, according to the release.