The share price of Peloton has jumped after it signed a deal to become the exclusive digital fitness content provider for athletic apparel giant, Lululemon.

The five-year strategic partnership will see Peloton’s content being made available on Lululemon’s exercise app, Lululemon Studio, while Lululemon will become Peloton’s primary athletic apparel partner.

As part of the global deal, a select number of Peloton’s instructors will also become ambassadors for Lululemon.

Following the news, Peloton’s stock jumped more than 28 per cent – from US$4.64 per share to US$5.94 – before settling at around US$5.39 (at the time of writing).

The move is part of Lululemon's plans to shut down Mirror, the interactive fitness tech business, which it acquired for a US$500m at the height of the pandemic in June 2020.

Lululemon confirmed it will stop hardware sales of Mirror this year, although support will continue for existing Mirror owners – including offering them the Peloton content on the Lululemon Studio app.

Celeste Burgoyne, president for Americas and global guest Innovation at Lululemon, said: "We’re excited to collaborate with Peloton to connect with our highly engaged communities across North America and in markets around the world.

“This partnership will create a powerful product offering for Peloton Members and fans.

"Our two companies share a vision to advance wellbeing through movement, and this partnership ensures our lululemon Studio Members will have access to the most expansive and dynamic offering of fitness content possible.”

From 1 November 2023, all-Access members of Lululemon Studio will have access to Peloton classes for the same price.

Peloton content will be updated on a weekly basis on the Studio device and companion app, with new Studio content produced by Lululemon through spring of next year.

In addition, exclusive Peloton content will be available to people who sign up for Lululemon’s free Essential membership programme, which currently has more than 13 million members.

Dion Camp Sanders, chief emerging business officer at Peloton.“By bringing together the best in fitness content with the best in athletic apparel, we’ll give our communities one-of-a-kind experiences and special content that will inspire them to achieve their goals.”