(RTTNews) – lululemon athletica Inc. (LULU) said that it agreed to buy at-home fitness company MIRROR for $500 million.
MIRROR offers weekly live classes and thousands of on-demand workouts as well as one-on-one personal training. MIRROR was founded in 2018.
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.
Upon completion of the transaction, MIRROR will operate as a standalone company within lululemon. Putnam, founder and chief executive officer of MIRROR, will continue as MIRROR’s chief executive officer.
The transaction is expected to close in the second quarter of fiscal 2020.
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