Apparel and accessories specialist, Under Armour, has announced the acquisition of Endomondo and MyFitnessPal, ‘establishing ownership of the world’s largest digital health and fitness community.’ The company noted that these acquisitions, which supplement its existing MapMyFitness and UA RECORD suite of applications, will ‘further enable the brand to provide unparalleled health and fitness data and insight, in support of its universal mission to make all athletes better.’
The latest acquisition follows Under Armour’s previous foray into digital fitness in November 2013 when it acquired MapMyFitness, the app to virtually track fitness workouts for a price tag of US$150 million.
Under Armour reportedly said it would pay US$475 million for MyFitnessPal, a free app for tracking food habits and caloric intake, and a further US$85 million for Endomondo, a Danish firm which describes itself as ‘the personal trainer in your pocket’.
Powered by more than 80 million registered users, MyFitnessPal is a leading free resource for achieving and maintaining health and fitness goals, providing nutritional information for over five million foods and offering caloric data associated with hundreds of exercises, empowering its community to make better, more informed healthy-living decisions.
Following its acquisition by Under Armour (UA), MyFitnessPal will expand the current offerings from UA Connected Fitness to include comprehensive nutrition tools, allowing users to track calories, nutrition and exercise.
Endomondo, meanwhile, is an open fitness tracking platform and social fitness network connecting athletes throughout the world. Utilizing GPS and other advanced technologies, Endomondo provides users with the ability to map, record and share their workouts.
Endomondo currently hosts 20 million registered users, approximately 80% of which are located outside of the US, providing immediate scale and increased international presence for the Under Armour Connected Fitness community.
“Under Armour’s demonstrated global leadership in health and fitness innovation is greatly enhanced with the addition of Endomondo and MyFitnessPal, as we continue to redefine and elevate the Connected Fitness experience for millions of people around the world,” said Kevin Plank, Chairman and CEO of Under Armour.
“Similar to MapMyFitness, Endomondo and MyFitnessPal have established track records of unmatched equity, expertise and passion in the fitness and nutrition space, and they are ideal partners to enable Under Armour to provide data-driven, proactive solutions to help athletes of all levels lead healthier and more active lifestyles.”
Combined with the growth of MapMyFitness, these acquisitions will expand Under Armour’s Connected Fitness community to include more than 120 million registered users.
“At MyFitnessPal, user success is our true North,” said Mike Lee, Co-founder and CEO of MyFitnessPal. “Under Armour will bring vast health and fitness expertise and resources to our 80 million users to help guide them as they work to achieve their health goals.”
“Endomondo has built an engaged global community of fitness enthusiasts, providing a strong technical platform for our users, while adhering to our core belief that social interaction and support are key motivators when it comes to getting fit and maintaining a healthy lifestyle,” said Mette Lykke, Endomondo Co-Founder and CEO. “We share in Under Armour’s passion for innovation, as well as its mission to make athletes better, and we look forward to better serving the needs of athletes around the world.”
As a wholly-owned subsidiary of Under Armour, Endomondo will continue to operate out of its headquarters in Copenhagen, Denmark. Following the anticipated closing of the acquisition in the first quarter of 2015, MyFitnessPal will continue to operate out of its headquarters in San Francisco, California.
Under Armour was advised by Goldman, Sachs & Co and the law firm King & Spalding in connection with both acquisitions, as well as the law firm Kromann Reumert in connection with the acquisition of Endomondo. Endomondo was advised by the investment banking firm Mooreland Partners and the law firm Mazanti-Andersen Korsø Jensen. MyFitnessPal was advised by the investment banking firm Qatalyst Partners and the law firm Fenwick & West.
On Wednesday, Under Armour reported a better-than-expected 37% increase in quarterly profit. The company noted that it has been growing its sales by integrating fitness tracking services with its sportswear.