Lululemon is acquiring the in-home fitness company Mirror for $500 million, the retailer announced Monday, marking its first acquisition with 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, which will be paid for in cash, is expected to close in the second quarter of fiscal 2020. Lululemon first invested $1 million in Mirror in mid-2019. Mirror, which launched in 2018, had raised $72 million from investors to date.