Peloton Interactive, Inc.
Acquisitions
3
Major Deals Covered
$420M
Disclosed Deal Value
Peloton Interactive's largest disclosed acquisition here is Precor for $420M in 2021. This page covers 3 major deals from 2019 to 2025, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| Precor | 2021 | $420.0M | Peloton acquired Precor, an US-based fitness equipment manufacturer and fitness cloud operator, for $420 million in cash on April 1, 2021, to establish the company's US manufacturing footprint, enhance research and development capabilities, and accelerate growth of commercial fitness verticals. The acquisition was intended to give Peloton greater control over its supply chain and reduce dependence on overseas manufacturing partners. |
| Tonic Fitness Technology | 2019 | Undisclosed | Peloton acquired Tonic Fitness Technology in 2019 to strengthen in-house manufacturing and supply chain control, tightening the company's ability to manage production quality and reduce dependence on third-party contract manufacturers. The acquisition was part of Peloton's strategy to vertically integrate its operations and gain greater control over the hardware production process. |
| Breathwrk | 2025 | Undisclosed | Peloton announced the acquisition of Breathwrk, a breathing exercise app, on October 1, 2025 as part of its push into broader wellness content. Terms were not disclosed. |
2025
Peloton announced the acquisition of Breathwrk, a breathing exercise app, on October 1, 2025 as part of its push into broader wellness content. Terms were not disclosed.
Adds breathwork and recovery content to the Peloton platform.
Integrated into Peloton's wellness offering; financial terms not disclosed.
2021
$420M
Peloton acquired Precor, an US-based fitness equipment manufacturer and fitness cloud operator, for $420 million in cash on April 1, 2021, to establish the company's US manufacturing footprint, enhance research and development capabilities, and accelerate growth of commercial fitness verticals. The acquisition was intended to give Peloton greater control over its supply chain and reduce dependence on overseas manufacturing partners.
Precor gave Peloton a U.S. manufacturing base and a commercial fitness business. Peloton later abandoned its planned Ohio factory and moved toward outsourced manufacturing.
Precor remains Peloton's commercial equipment brand and contributed to equipment outperformance in fiscal 2026.
2019
Peloton acquired Tonic Fitness Technology in 2019 to strengthen in-house manufacturing and supply chain control, tightening the company's ability to manage production quality and reduce dependence on third-party contract manufacturers. The acquisition was part of Peloton's strategy to vertically integrate its operations and gain greater control over the hardware production process.
The Tonic Fitness acquisition enhanced Peloton's manufacturing capabilities and supply chain management, contributing to the company's ability to scale production during the pandemic-driven demand surge in 2020 and 2021. The acquisition also provided Peloton with additional engineering talent that contributed to product development efforts.
The Tonic Fitness acquisition was integrated into Peloton's operations and contributed to the company's ability to scale production during the pandemic boom, though the specific financial terms of the deal were not disclosed.
Under Peter Stern, Peloton is positioning itself as a connected wellness platform rather than a bike maker. The October 2025 relaunch introduced the Cross Training Series hardware, Peloton IQ AI coaching, higher membership prices and the Breathwrk breathing app acquisition. The company is also pushing commercial sales through Precor, retail and partner channels, and app-only memberships that do not require Peloton hardware.
Peloton makes money in two ways. First, it sells connected hardware (Bike, Bike+, Tread, Tread+, Row and the Cross Training Series launched in October 2025) plus Precor equipment for gyms, hotels and other commercial customers. Second, and more importantly, it charges recurring membership fees: All-Access Membership for hardware owners rose from $44 to $49.99 per month in October 2025, while app-only tiers (App One and App+) cost $15.99 and $28.99 per month. Subscription revenue carries far higher gross margins than hardware, so the installed base of about 2.55 million paid Connected Fitness subscriptions is the core of the economics.
In April 2021, Peloton completed its largest acquisition by purchasing commercial fitness equipment giant Precor for $420 million. The transaction provided Peloton with commercial manufacturing facilities in North Carolina and Washington, established a direct sales force for hotels and multi-family gyms, and added a large commercial patent portfolio.
In October 2019, Peloton acquired its primary Taiwanese manufacturing partner, Tonic Fitness Technology, for $47.4 million, initially bringing bike frame assembly and manufacturing operations in-house to secure component supply.
In 2021, Peloton acquired digital corporate wellness platform Peerfit, bolstering Peloton's B2B enterprise capabilities and helping launch Peloton for Business across employer health plans and insurance networks.
In early 2021, Peloton acquired smartwatch and AI fitness tracker maker Atlas Wearables and interactive workout screen startup Otari, integrating their computer vision and motion-tracking talent into the development of the Peloton Guide strength-training device.
In 2021, Peloton acquired Ackeo, a hardware and software development company specializing in interactive fitness electronics, strengthening Peloton's internal hardware and sensor engineering teams.
Under CEO Barry McCarthy, Peloton explored strategic alternatives for Precor before deciding to operate Precor as an independent, standalone commercial fitness subsidiary, leveraging Precor's commercial distribution to place Peloton content and bikes into global hotels and universities.
In 2022, as post-pandemic demand normalized, Peloton halted the planned $400 million construction of its large domestic manufacturing facility in Troy Township, Ohio, saving hundreds of millions in future capital expenditures and shifting fully to third-party contract manufacturing with Rexon.
Peloton has shifted from aggressive capital-intensive M&A to organic software innovation, selective digital content licensing, and strategic corporate partnerships (like Lululemon and Hilton) to drive high-margin subscriber growth without balance sheet dilution.
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