Lululemon has acquired home fitness company MIRROR for $500 million.

The augmented reality technology give access to weekly live classes and thousands of on-demand workouts, as well as immersive one-on-one personal training. MIRROR has seen rapid growth since it launched in 2018, as demand for in-home fitness continues to rise.

Lululemon chief executive Calvin McDonald explained: “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.

"The acquisition of MIRROR is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities - we look forward to learning from and working with the team at MIRROR to accelerate the growth of personalised in-home fitness.”

This transaction builds on a previous partnership between the two companies, which began in mid-2019 with an initial investment in MIRROR by Lululemon, which also included a content partnership which brought fitness and meditation classes to the MIRROR platform.

Brynn Putnam, founder and chief executive officer of MIRROR - and a former Lululemon ambassador - said: “MIRROR can further strengthen its position and accelerate its growth by leveraging Lululemon’s deep relationships with its guests, ambassadors and communities, as well as the company’s infrastructure, including its store network and e-commerce channels, to acquire new users.”

The purchase price is expected to be paid from the company’s primary sources of liquidity, which include over $800 million in cash, its existing $400 million revolving credit facility, and a new one-year, $300 million revolving credit facility.

Following completion of the transaction, MIRROR will operate as a standalone company and Putnam will continue as MIRROR’s chief executive, reporting to McDonald. The transaction is expected to close in the second fiscal quarter of 2020.

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