Lululemon Athletica said it will acquire at-home fitness startup Mirror as it looks to expand its market reach beyond yoga pants and athleisure wear.
The Vancouver-based company is entering into a definitive agreement to acquire Mirror for $500 million, Lululemon said in a statement to investors on Monday.
"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," Lululemon CEO Calvin McDonald said in a statement.
"The acquisition of MIRROR is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities, and deepen our roots in the sweatlife," McDonald added. "We look forward to learning from and working with Brynn Putnam and the team at MIRROR to accelerate the growth of personalized in-home fitness."
Putnam, founder and CEO of Mirror, said he's "thrilled to officially become a part of the Lululemon family."
Putnam added that he hopes to leverage Lululemon's relationship with guests and "ambassadors" to acquire users. Putnam will continue as Mirror's CEO but report to McDonald.
Mirror, which launched in 2018, offers on-demand workouts and virtual personal training streamed through a videoed mirror screen. The device starts at about $1,500, not including subscription fees for live or on-demand classes.
In a 2018 interview with "Good Morning America," Putnam said inspiration for the device came after he "realized that we could build a nearly invisible home gym using a mirror."
"The first thing most people say when they see the Mirror is, 'This is the future,'" Putnam said.
The acquisition comes even as -- like much of the retail sector -- Lululemon took a major financial hit due to the coronavirus pandemic.
The company revealed earlier this month that net revenue declined 17% in the first quarter of fiscal year 2020 compared with 2019, as all of the company's stores in North America and Europe were shuttered for a significant portion of the quarter. As of June 10, Lululemon said 295 of its 489 company-operated stores had reopened.