Lululemon Buys Mirror for $500 Million
Lululemon has announced that it has acquired Mirror, an in-home fitness company, for a purchase price of $500 million.
The company offers a mirror that turns into an interactive home gym. When turned off, it acts as a full-length basic mirror. When turned on, users are able to pick from weekly live classes, on-demand workouts, and one-on-one personal training, according to a release from Lululemon.
Why This Deal Makes Sense:
- This acquisition allows Lululemon to expand on their digital strategy by providing it’s customers with an unrivalled workout experience at home.
- The Mirror platform provides Lululemon with a core digital pillar to build an ultimate lifestyle brand. Lululemon has millions of passionate customers who love their products. Mirror would be a digital extension for new products.
- Peloton has solidified itself as a strong and surging brand in the interactive fitness space. This deal is a steal for Lululemon as Mirror currently has a revenue run rate of $100 million with low brand awareness.
- This deal allows Lululemon to have product integration into their strategy. This provides them with cross-sell opportunities in the stores, loyalty programs, marketing channels, and recurring revenue through subscriptions from their customers.