Peloton Interactive Inc (PTON  ) shares are popping after the close on Wednesday after the connected fitness company announced a five-year deal with Lululemon Athletica Inc (LULU  ).

What Happened: Pelton and Lululemon announced a five-year strategic global partnership, making Pelton the athletic apparel company's exclusive digital fitness content provider. Lululemon will become the primary athletic apparel partner for Peloton.

Under the partnership, the two companies will engage customers across the globe through technical athletic apparel, real-life experiences, special programming, and original content.

"As a leader in technical athletic apparel, this partnership will create a powerful product offering for Peloton Members and fans," said Celeste Burgoyne, president Americas and global guest innovation at lululemon.

"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."

Co-branded apparel is set to hit the shelves on Oct. 11. Beginning Nov. 11, Lululemon studio all-access members will gain access to Pelton classes for no additional cost.

Lululemon noted that it plans to discontinue its Studio Mirror product before the end of the year.

Lululemon will also discontinue its digital app-only membership tier on Nov. 1 and offer current studio app-only members the opportunity to become a Peloton app one member.

PTON Price Action: Peloton shares are down more than 41% year-to-date. The stock was up 13.30% after hours at $5.27 at the time of publication, per Benzinga Pro.