Under Armour Acquires MyFitnessPal for $475 Million


Under Armour announced today that it has acquired MyFitnessPal for $475 million and Endomondo for $85 million. MyFitnessPal is a free calorie-counting app that boasts an impressive 45 million active users. Endomondo is a fitness app that has 20 million active users and helps people set fitness goals, track progress, and share results.  Combined with the 20 million active users picked up from its December 2013 acquisition of MapMyFitness, Under Armor now counts 85 million active users among its digital health customers, making it the custodian of the largest consolidated base of digital health app users in the world.

UA is clearly taking aim at Nike and its growing Nike+ digital health ecosystem with the new acquisitions. The two giants of sports apparel are in an arms race to build a dominant digital footprint in the fitness space. While it’s unclear how UA will monetize its ballooning position in digital health, what is clear is that they see real value in growing their presence. UA has paid out over $700 million acquiring fitness apps in just over a year.  In addition, the company unveiled its own fitness app at CES2015. Called UA Record, the app is being billed as a social network for fitness enthusiasts where calories and workouts can be monitored together, and network-wide challenges are held to engage and motivate users.

While UA continues to pour money into the digital health space, the company can do so because it is having a great year financially. Along with the acquisition announcement, the company reported its 2014 year end financial results. UA closed out 2014 with $3.08 billion in net revenue, a 32-percent increase from 2013. EPS also increased, from $0.75 in 2013, to $0.95 through 2014.

Unlike UA, Nike+ has pivoted its digital health strategy this year, announcing that it would shut down its popular activity tracker line FuelBand to focus on developing its digital health ecosystem, Nike+. While not as headline-grabbing as UA’s news, Nike did generate some buzz this winter after creating 100,000 unique motivational videos for its most active FuelBand users. To make the videos, Nike analyzed FuelBand workout data, collecting information on where and when each of its most active users were typically jogging, then a personalized video was created showing a cartoon figure running along the same route.

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