Under Armour spends $560M to acquire MyFitnessPal and Endomondo

By Aditi Pai
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Under Armour RecordBaltimore, Maryland-based athletics apparel company Under Armour is acquiring two health and fitness app makers: San Francisco-based fitness platform MyFitnessPal and Denmark-based Endomondo. Endomondo, which makes free GPS-based tracking apps, went for for $85 million and MyFitnessPal, which offers apps that track fitness and diet, was acquired for $475 million.

MyFitnessPal has raised at least $18 million in funding and Endomondo has raised around $8 million, according to TechCrunch.

These aren't the first digital health acquisitions for Under Armour, which bought fitness app maker MapMyFitness in November 2013 for a reported $150 million.

Under Armour claims that following these acquisitions it has a unique user base of 120 million. Following its acquisition of MapMyFitness, Under Armour said it had 31 million users. Endomondo claimed to have 20 million users -- 80 percent of which are outside of the US -- and MyFitnessPal said it had more than 80 million. Between those three groups apparently there were only 11 million users who used an app from more than one of the three companies. 

Under Armour will fund the $475 million acquisition of MyFitnessPal "through an expanded term loan and revolving credit facility as well as cash on hand." It expects that deal to close by the end of Q1. The Endomondo deal officially closed last month.

Endomondo will continue to operate out of its headquarters in Copenhagen, but as a wholly-owned subsidiary of Under Armour. Assuming the MyFitnessPal deal closes as planned, it will also continue to operate out of its headquarters in San Francisco, CA.

Earlier this year Under Armour announced a partnership with mobile device maker HTC. While the details of that deal remain fuzzy, Under Armour's designers, sports scientists and athletes are working closely with HTC’s Connected Products business unit, as well as its design and engineering teams to create products for both professional and amateur athletes.

Under Armour also launched a new app, called UA Record, an aggregator app for health and fitness data.

“UA Record offers everyone of all fitness levels the ability to proactively manage their health and fitness,” Kevin Plank, founder and CEO of Under Armour, said at the time. “By syncing the thousands of fitness tracking devices and apps onto its open platform, and creating a visual dashboard of your data, UA Record is a simple and empowering tool designed to help people lead healthier and more active lives.”