Lululemon Athletica Inc announced on Monday that it intends to acquire tech startup Mirror for $500 Million. Mirror, is a fitness tech start up founded by Harvard grad Brynn Putnam in 2016. Investors of the startup included Karlie Kloss, Point 72’s Steven Cohen, Spark Capital, and others. Mirror is an interactive home gym withc features workout classes and even games. The product is sleek and resembles a large rectangular mirror, hence the name.
Why Is It A Good Acquistion Though?
The purchase compliments Lululemon’s brand for several reasons. Firstly, the Covid-19 pandemic will cause many people to explore at home workout solutions. Mirror is a unique addition to the home workout equipment market
Secondly, Mirror takes up significantly less space than other home workout tech oriented equipment, like Peloton. This fact was evident to investors, as shares of Peloton Interactive Inc fell 2% after then news was released.
Thirdly, and perhaps most importantly, this acquisition allows directly will allow Lululemon to enter the tech space. The backend technology will collecct and analyze large amounts of data points on Lululemon’s client base. Lululemon already has a cult like following. With the inclusion of real time data their hold on the market segment will calcify. The company can further target their consumer base with Lululemon endorsed instructors who lead branded workouts on their proprietary platform.