Under Armour acquires MyFitnessPal for $475 million

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Under Armour, a Baltimore-based performance apparel brand, has been doing some heavy lifting to be an important player in the fitness field both online and offline. Their latest pur-chase is a huge one: The sportswear company announced on February 4, 2015 that they had purchased MyFitnessPal for $475 million, as well as the smaller $85 million purchase of running app Endomondo.

MyFitnessPal is a popular free app that helps you track your food intake and calories, and is mostly used by personal trainers and other fitness professionals. MyFitnessPal works with a large number of popular health apps and trackers, such as Fitbit, Jawbone, and Garmin. With MyFitnessPal having 45 million active users, it’s greatest strength is that it’s API is so popular that even some health apps or accessories have a direct connection to link data into MyFitnessPal.

Endomondo is an older fitness app which includes interval training for biking and running combined with some social capabilities. “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,” Kevin Plank, chairman and CEO of Under Armour, said in a statement.

The two acquisitions together will expand Under Armour’s digital user base to more than 120 million users, according to the company. With 120 million registered users linked to the apps that Under Armour has purchased they have created the world’s largest digital and health community.

With the purchases of these two apps, Under Armour is expected to see as much as 50 percent growth in customers which will include 72 million women. Under Armour has said that they expect sales of apparel and shoes to women, a key growth driver for overall sales to even-tually equal or surpass the men’s business.

Last fall, Under Armour surpassed Adidas to become the No. 2 sportswear brand in the U.S. by retail sales, but they still remain far behind Nike. Under Armour wants to compete with their rival, Nike, to create a digital platform for athletes that are serious about their sports. Be-cause Under Armour sees high-performance athletes as core customers, “…these two acquisi-tions provide critical support to two key drivers of [athletes’] success: managing diet and train-ing,” said Auburn Bell, an affiliate professor of marketing at Loyola University Maryland.. “The end benefit for UA: a stronger, more loyal relationship with its key customers.” Under Armour launched an app call UA record for iOS and Android. This app helps track sleep, weight, as well as steps and workouts. In 2013, Under Armour released a product that was seen inferior to Ni-ke’s FuelBand which was called Armour39.

Under Armour and smartphone maker HTC last month announced a partnership to de-sign a series of products that will be able to integrate with the UA Record app. Under Armour wants to make sure that their customers are able to take Under Armour everywhere with them. From training for your sport or just going out for a walk, Under Armour will be able to track your progress. Now that Under Armour is the face of MyFitnessPal and Endomondo, it shows that they want their customers/athletes to care about their nutrition and fitness. With their customers caring about those two components, Under Armour will sell more.

 

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