Peloton reaches an all-time high after announcing its deal with Precor
The week started on the right foot for Peloton - the creator of exercise equipment and media company - after it agreed to a $420 million deal.
Peloton revealed that it would buy one of its rivals, Precor, for the abovementioned amount. This will give the New York-based company a well-established presence in commercial spaces (universities, hotel gyms, and fitness centers) and a more extensive manufacturing base that could improve the pace of deliveries of its products to customers, as the delivery time has been an on-ongoing issue for Peloton. Moreover, it is Peloton's chance to expand even more, as Precor is present in 100 countries.
The acquisition, which is the largest so far for Peloton, is expected to close in the first six months of 2021.
At the moment of writing, Peloton stock price gained more than 7.80%, reaching an all-time high, hinting to an opening price of $155 per share. If the momentum continues, the stocks will extend their six-month gain to 192%.
Sources: thestreet.com, finance.yahoo.com