Peloton Buys Design Firm That Helped Facebook, Google
(Bloomberg) -- Peloton Interactive Inc., the provider of fitness appliances and classes, has quietly acquired a Silicon Valley engineering firm that designed devices for Google and Facebook Inc.
Peloton bought Gossamer Engineering earlier this year to help the company ramp up in-house development of its products such as treadmills and bicycles, according to people familiar with the matter. It’s unclear how much Peloton paid for the business, but the transaction has the hallmarks of an acqui-hire, where smaller companies are purchased mostly for their talented staff.
In May, 16 engineers specializing in mechanical and electrical engineering, quality assurance, and technical program management, joined Peloton as part of the Gossamer deal, the people said. They asked not to be identified discussing a private transaction.
When it was an independent firm, Gossamer Engineering was contracted by Facebook to help develop its Portal video chat device. It also worked with Google’s Advanced Technology and Products group, which developed components like the motion sensor in the latest Pixel smartphone. Some of the key players at Gossamer were executives at Barnes & Noble Inc. who oversaw development of the Nook e-reader.
Peloton declined to comment, citing a quiet period before results this week. The company, known for its stationary bike and online workout classes, is seeking to enter new areas. A review of Peloton domain name registrations suggest it is considering new fitness categories such as a rowing machine and a Stairmaster rival. While it has registered these domains, that doesn’t mean it will launch such products. The Gossamer engineers could also work on current hardware.
After launching a workout bike in 2014, Peloton introduced a treadmill in 2018. It completed an initial public offering earlier this year. Peloton Chief Executive Officer John Foley told Bloomberg in September that the company is investing in new markets and fitness categories.
To contact the reporters on this story: Mark Gurman in San Francisco at mgurman1@bloomberg.net;Julie Verhage in New York at jverhage2@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Alistair Barr, Molly Schuetz
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