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Lululemon taking over Mirror
Posted on Tuesday, 30 June 2020 14:31
Nasdaq-listed athletic apparel retailer Lululemon Athletica has signed on the dotted line to acquire Mirror, an interactive workout platform provider.
Under the terms of the agreement, the buyer will pay USD 500.00 million for the business, to be financed using its primary sources of liquidity, namely cash, a revolving credit facility and a new one-year credit facility.
Lululemon believes the purchase will strengthen its existing offering and enable it to attract new customers, with chief executive Calvin McDonald identifying its digital and interactive abilities as particular areas of growth.
Completion remains subject to conditions and is slated to close during the second quarter of fiscal 2020.
Following closing, Mirror will operate as a standalone company under Lululemon’s ownership, with Brynn Putnam remaining in place as chief executive.
The New York-headquartered target provides live weekly home fitness classes and thousands of on-demand sessions, in addition to one-on-one personal training.
Its technology enables users to exercise from their homes, making use of responsive software and bespoke content.
Mirror’s investors include Spark Capital Partners, which led the firm’s USD 13.00 million funding round in February 2018.
Other participants in that injection included First Round Capital, High Peaks Management and BoxGroup.
Zephyr, the M&A database published by Bureau van Dijk, shows that the largest deal targeting a software publisher to have been announced worldwide since the beginning of 2020 was worth USD 5.00 billion.
That transaction saw Insight Holdings pick up Cyprus-based backup, replication and virtualisation management technology developer Veeam Software in March.
It was followed by the USD 2.50 billion purchase of post-acute care management software maker naviHealth by OptumHealth in May.
Other companies in the sector to have been targeted this year include the likes of Compuware, ForeScout Technologies and Engineering Ingegneria Informatica.
© Zephus Ltd