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Photo: Jeremy Moeller/Getty Images

Fitness apparel company Lululemon announced Monday it will buy connected fitness company Mirror for $500 million.

Why it matters: This could be the first in a series of connected fitness acquisitions by both retail and media companies.

Details: Lululemon and Mirror had an existing business relationship, including a small equity investment, and began acquisition talks fairly recently.

  • The $500 million is in cash, per a source familiar with the situation.
  • Mirror raised over $70 million in venture capital since its 2016 founding, most recently last fall at a $300 million valuation. Backers include Lerer Hippeau, Spark Capital, Point72 Ventures, and LionTree Advisors.
  • Expect to eventually see Mirror displayed in Lululemon stores, which also may host Mirror classes.

The big picture: Shares of connected fitness leader Peloton fell in the aftermarket on the news, although the company remains valued north of $16 billion. Two weeks ago, connected rowing company Hydrow raised $25 million in new funding, while Tonal is reportedly in talks to raise around $250 million.

Go deeper

Dan Primack, author of Pro Rata
Oct 6, 2020 - Economy & Business

Space cargo company Momentus going public via SPAC

Illustration: Aïda Amer/Axios

Space cargo delivery startup Momentus has agreed to go public via a reverse merger that would value the company at just over $1.5 billion, Axios has learned from a source familiar with the situation.

Details: The company would become listed on the Nasdaq under ticker symbol MNTS, and would secure a simultaneous $175 million investment from Capital Group, D.E. Shaw, Lerner Enterprises, Tribe Capital, and Axon Capital.

Updated 7 hours ago - World

Mexican President López Obrador tests positive for coronavirus

Mexico's President Andrés Manuel López Obrador during a press conference at National Palace in Mexico City, Mexico, on Wednesday. Photo: Ismael Rosas/Eyepix Group/Barcroft Media via Getty Images

Mexican President Andrés Manuel López Obrador announced Sunday evening that he's tested positive for COVID-19.

Driving the news: López Obrador tweeted that he has mild symptoms and is receiving medical treatment. "As always, I am optimistic," he added. "We will all move forward."

7 hours ago - Politics & Policy

Sarah Huckabee Sanders to run for governor of Arkansas

Sarah Huckabee Sanders at FOX News' studios in New York City in 2019. Photo: Steven Ferdman/Getty Images

Former White House press secretary Sarah Huckabee Sanders will announce Monday that she's running for governor of Arkansas.

The big picture: Sanders was touted as a contender after it was announced she was leaving the Trump administration in June 2019. Then-President Trump tweeted he hoped she would run for governor, adding "she would be fantastic." Sanders is "seen as leader in the polls" in the Republican state, notes the Washington Post's Josh Dawsey, who first reported the news.