Lululemon, the Vancouver-based athleisure company, has agreed to acquire NYC-based Mirror, the connect fitness system for $500M in an all-cash transaction. “This isn’t just about getting guests to be apparel,” remarked Calvin McDonald, CEO of Lululemon. “This is about strengthening our community with our guests and memberships, and it’s going to be its own revenue stream model, which we are excited about.”
This isn’t just about getting guests to be apparel. This is about strengthening our community with our guests and memberships, and it’s going to be its own revenue stream model, which we are excited about. – Calvin McDonald
Founded in 2016 by Brynn Putnam, Mirror has raised a total of $74.8M in total reported equity funding with investors that include First Round Capital, Lerer Hippeau, Spark Capital, BoxGroup, Primary Venture Partners, Brainchild Holdings, Point72 Ventures, LionTree Partners, Karlie Kloss, Steve Lockshin, and Kevin Huvane.
Lululemon invested in the Mirror’s Series B1 round and the two organizations formed an exclusive ambassador content partnership last year, both of which AlleyWatch reported on. Mirror appears to be the only startup that Lululemon has invested in and it’s the company’s first acquisition as well. Mirror will continue to operate independently under its own brand with Putnam remaining as CEO and reporting directly to McDonald. The transaction is expected to close later this year. Lululemon went public in 2007 and is trading at a $38.33B market cap and is up another 10% in after-hours trading. The company is just 10% off of its all-time high and currently has a P/E ratio of 66.68 with $1.1B of cash on the balance sheet as of 1/31/2020.