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                              Peloton to Acquire Precor for $420 Million

                              Lal Pratap by Lal Pratap
                              December 24, 2020
                              in Tech
                              Reading Time: 3 mins read
                              0
                              Peloton to Acquire Precor for $420 Million

                              via: Peloton

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                              The fitness company called Peloton Interactive has acquired another fitness company Precor for $420 Million. This acquisition is going to increase the manufacturing capabilities of the company.  Moreover, the company can also expand its customer base and use the benefits offered by Precor’s development teams. Peloton had $2 billion in cash and marketable securities at its fiscal 2021. So Peloton had good enough cash at its hand to get Precor.

                              Know all the details about it here.

                              Information about Peloton

                              Peloton is a famous exercise equipment company that started in 2012. It got launched with the help of a Kickstarter funding campaign. Their main products are the stationary bicycle and treadmill that helps the monthly subscribers to take part in classes. The trainers train the customers from the company’s s fitness studio. Some of the celebrity trainers are also part of the program so the company is famous for this too.

                              Some of the popular instructors are Ally Love, Alex Toussaint, Jess King and Robin Arzon. The founders of the company are Graham Stanton, Hisao Kushi, Yony Feng I, John Foley, and Tom Cortese.

                              Information about Precor Incorporated

                              Precor is also a trusted fitness brand that produces high-end gym equipment. The headquarters of the company is in Woodinville, Washington, United States. It is one of the trusted brands in America that offers treadmills, climbers, cycles, elliptical trainers and more. Many health clubs, universities and hotels buy equipment from this brand.

                              ADVERTISEMENT

                              Peloton is proud to announce we've entered into an agreement to acquire Precor, one of the largest global commercial fitness equipment providers, and look forward to working with their incredibly talented team. https://t.co/oQtasR7y4n

                              — Peloton (@onepeloton) December 21, 2020

                              How will the acquisition benefit Peloton?

                              The company Precor has operations in many parts of the world but Peloton wanted to use Precor’s manufacturing in North Carolina and Washington. The supply chain of Peloton hit hard in 2020 because of the sudden increase in demand. The customers had to wait for a long time to get the service. So the acquisition will help Peloton to work better.

                              Peloton Bike

                              Peloton also wishes to increase its customer base. The most used products of the company are the treadmill, stationary bike and Peloton Hydrow Rover. However, it has many other commercial customers too such as the hotels and colleges. So Precor can assist the company to thrive in all kinds of markets that will increase the commercial customers.

                              The investors expected many things from Peloton but the acquisition of Precor came as a surprise to many. The stock of Peloton increases up to %9 per cent when the investors got the news.

                              Conclusion

                              Peloton is having many plans for the future. This acquisition of Precor is really going to help the company to increase its manufacturing capabilities.

                              Also read: Top 5 Best Fitness Gifts for Active Men

                              Tags: exercise equipmentfitness company

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