• Financial Times , Tuesday, September 23, 2008 10:30 AM

Gap is acquiring Athleta, which currently operates as a direct-to-consumer retailer selling its own-label products such as yoga pants and swimsuits via its web site and catalogs. Its target is women aged mostly between 25 and 55. The $150 million deal is Gap's first acquisition in more than 20 years.

Gap says that initially the brand's site will be added to its unified U.S. website, which allows customers to combine online shopping at its Gap, Old Navy, Banana Republic and Piperlime brands. A spokeswoman says the company will "of course consider whether other options, including bricks and mortar stores, might make sense over time."

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