Peloton Signs Agreement to Acquire Precor

The program is not free for Peloton. It has to spend money to acquire corporate wellness partners. On December 21, 2020, Peloton, the leading interactive fitness platform, announced that it had entered into an agreement to acquire Precor. The press release can be found here. Amelise Lane, Peloton, Press@onepeloton.com; Christopher Wilson, Precor, Christopher.Wilson@Precor.com Peloton announced that it has entered into an agreement to acquire Precor, one of the world`s largest suppliers of commercial fitness equipment with a significant manufacturing presence in the United States, in a $420 million transaction. Alex explains how this deal could help solve some of Peloton`s recent supply issues and how Precor could be an advantage as the training/media company develops new connected training equipment products. Original content to download multimedia:www.prnewswire.com/news-releases/peloton-signs-agreement-to-acquire-precor-301197115.html It costs Peloton $500 to $600 to attract a customer. Therefore, Peloton has a profitable economic unit in the purchase of equipment ($760 gross margin minus $500-600 CAD). In December 2020, Peloton acquired commercial fitness maker Precor for $420 million2.

The reasoning was clear. At a time when Peloton`s Asian supply chain was blocked, Precor was providing production capacity in the United States. In addition, he had extensive know-how in terms of strength, a vertical platoon was eager to enter. It also had a rolodex of relations with colleges, company premises, hotels and apartment buildings. For more information on the risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, as well as the risks associated with our business in general, please see the «Risk Factors» section of our filings with the Securities and Exchange Commission (SEC), including our most recent Forms 10-K and 10-Q. which are available on the Investor Relations page of our website under investor.onepeloton.com/investor-relations and on the SEC`s website under www.sec.gov. PELOTON SIGNS AGREEMENT TO ACQUIRE PRECOR: www.precor.com/sites/default/files/PDF/PELOTON-SIGNS-AGREEMENT-TO-ACQUIRE-PRECOR.pdf It`s a smart decision. People like free stuff, but they also like discounts. Employees enrolled in Corporate Wellness can try Platoon courses for free or at a reduced cost3.

Once Peloton signs a new corporate wellness partner, it will have a market-linked employee base. In addition, the partner helps cover the cost of Peloton products. By promoting its wellness program, the partner also subsidizes Peloton, a Jedi-minded trick made possible by its strong brand. About Peloton Peloton is the leading interactive fitness platform with a loyal community of over 3.6 million members. The company has pioneered connected fitness, based on technology and streaming immersive instructor-led shop classes for its members anytime, anywhere. Peloton makes fitness fun, accessible, effective and convenient, while fostering social connections that encourage its members to be the best versions of themselves. As an innovator at the intersection of fitness, technology and media, Peloton has reinvented the fitness industry by developing a unique subscription platform that seamlessly combines best-in-class devices, proprietary connected software, and world-class fitness and wellness digital streaming content, creating a product its members love. The brand`s immersive content is accessible through the Peloton Bike, Bike+, Tread, Tread+ and Peloton app, which provides access to a full range of fitness classes from all disciplines on any iOS or Android device, Apple TV, Fire TV, Roku TVs, as well as Chromecast and Android TV. Founded in 2012, Peloton is headquartered in New York and has a growing number of showrooms in the United States, the United Kingdom, Canada and Germany. For more information, see www.onepeloton.com. Revenue growth is the main driver of enterprise value, and customer lifetime value (LTV) is the main driver of revenue growth. LTV is determined by acquisition costs (CAC), monetization and customer loyalty.

It`s the value of your current and future customers. With Corporate Wellness, partner companies help reduce Peloton`s CAC. Samsung and Wayfair`s benefits teams help Peloton attract new customers and primarily fund its marketing department7. NEW YORK, 21. Dec. 20, 2020 /PRNewswire/ — Peloton (NASDAQ: PTON), the leading interactive fitness platform, today announced that it has entered into an agreement to acquire Precor, one of the world`s largest suppliers of commercial fitness equipment with a significant manufacturing presence in the United States, in a $420 million transaction. With this acquisition, Peloton plans to strengthen its production capacity in the United States, increase its research and development capabilities with Precor`s highly skilled team and accelerate Peloton`s penetration into the commercial market. Peloton plans to manufacture connected fitness products in the United States. before the end of the 2021 calendar year. Subject to the closing of the transaction, Precor will operate as a business unit within Peloton. Rob Barker, President of Precor, becomes CEO of Precor and General Manager of Peloton Commercial and reports to William Lynch, President of Peloton. Precor is a division of Finnish sporting goods company Amer Sports, which is owned by a consortium of investors including ANTA Sports (HKG: 2020.HK), FountainVest Partners, Anamered Investments Inc.

and Tencent Holdings Limited. The transaction is expected to close early in calendar year 2021. . For more information, please visit Peloton`s Investor Relations website for a Q&A document on this proposed transaction… JP Morgan Chase, Let`s Go, Peloton and Chase Sapphire: Sapphire partners with Peloton to introduce new benefits for cardholders on October 27, 2020. The acquisition would add a team of nearly 100 employees dedicated to research and development dedicated to Peloton`s experienced R&D team. With decades of experience in developing and building cardio and bodybuilding equipment. Corporate Wellness is a purchase option for Peloton. The initiative leverages Precor`s brand and corporate relationships and has the potential to reach millions of employees in partner companies. SAP alone employs more than 100,000 people. Only a subset of each partner`s employees will participate in the well-being of the company and only a subset of them will be delighted. The nature of the program is that Peloton`s partners subsidize its CAC.

It`s a low-cost bet with high upside potential… Peloton seems increasingly confident about updating digital users. In addition to corporate wellness, the company is partnering with Chase Sapphire to provide $120 in bank statement credits for Peloton memberships, covering most of the annual cost of a $156 digital subscription.4 The strategy is to attract customers with discounts, then hook them and sell them. It`s working. Jill Woodworth, Chief Financial Officer of Peloton, said in March 2021, «Over the past year, we`ve dedicated more resources to creating a powerful upgrade pathway, from digital to connected fitness, and we`re currently posting the highest monthly upgrade rates we`ve ever achieved.