Gap Inc. to buy women's sportswear company

SAN FRANCISCO Gap Inc. reported that it has agreed to acquire Athleta Inc., a popular women’s sports and active apparel company based in Petaluma, Calif., for about $150 million in cash.

Following the acquisition, Athleta will become the “fifth tab” on Gap Inc.’s unique online platform, called Universality. The innovative technology allows shoppers to browse and buy from all of the company’s brands in one shopping cart with a single shipping fee. Athleta’s products will be ultimately sold online alongside those from Gap, Banana Republic, Old Navy and Piperlime.

”We’re thrilled to become part of this great company and to have found a partner that supports our vision for Athleta,” said Joe Teno, the current ceo of Athleta who will remain as President of Athleta at Gap Inc. upon the completion of the deal. “With Gap Inc.’s e-commerce platform and iconic brands, more customers will learn about Athleta as we continue to provide our existing customers with the great products and service they’ve come to expect from us.”