Under Armour is doing some heavy lifting to be a key player in the fitness space both online and offline. The sports apparel company has agreed to buy MyFitnessPal, a popular diet-tracking app, for $475 million. Under Armour announced the MyFitnessPal acquisition, as well as the comparatively smaller $85 million purchase of running app Endomondo.
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Together, the deals are the latest move by Under Armour to create an athletics-minded online network, an effort that began with the 2013 acquisition of MapMyFitness for $150 million.
The transactions will drastically expand the company’s online base. MyFitnessPal, which lets users track their diet and workouts through a smartphone app, boasts more than 80 million registered users. And Endomondo, a Danish start-up that aims to be a virtual fitness coach, says that it has 20 million registered users, 80 percent of whom live outside the United States.
“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,” Kevin Plank, Under Armour’s chairman and chief executive, said in a statement. “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.”
The deals value MyFitnessPal at $475 million and Endomondo at $85 million. Those prices will provide decent exits for the companies’ existing investors. Accel Partners and Kleiner, Perkins, Caufield & Byers invested $18 million in MyFitnessPal in 2013, with each taking a seat on the board. Endomondo has raised $8.2 million from angel investors and the investment firm Seed Capital,according to Crunchbase.
Under Armour will pay for the MyFitnessPal deal through bank loans and cash on hand. It was advised by Goldman Sachs and the law firm King & Spalding, with another law firm, Kromann Reumert, providing additional counsel for the Endomondo acquisition.
MyFitnessPal received advice from Frank Quattrone‘s Qatalyst Partners and the law firm Fenwick & West, while Endomondo relied on the investment bank Mooreland Partners and the law firm Mazanti-Andersen Korso Jensen.
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via NY Times