(Reuters) -Exercise bike maker Peloton Interactive Inc said on Monday it would buy peer Precor in a deal valued at $420 million, as it looks to boost its market share for fitness products.
Peloton’s shares, which have gained more than 400% this year, rose another 5% after the bell.
Demand for streaming exercise services and home work-out equipments soared during the COVID-19 pandemic, with gyms and fitness clubs closed across the United States for several weeks.
Peloton now looks to add more commercial establishments to its customer base with the addition of Precor, which counts hotels, college and corporate campuses as its customers.
New York-based Peloton also said the deal, which is expected to close early next year, would also boost its manufacturing capacity in the United States, helping it deliver products to its customers sooner.
Precor is a unit of Finnish sports equipment maker Amer Sports, which is owned by an investor consortium that includes Anta Sports and Tencent Holdings Ltd.
Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel