Under Armour buys two fitness apps, builds trove of health data

MyFitnessPal and Endomondo give Under Armour access to a valuable new pot of health data

Under Armour is shelling out $US560 million to buy two fitness apps, giving it access to a mountain of data about health enthusiasts that it hopes will help it to sell more sportswear.

The maker of hoodies, running shorts and other athletic wear will pay $US475 million to buy MyFitnessPal, an app that helps people lose weight by letting them record what they eat and count calories. It's also paying $US85 million for Endomondo, an app from Denmark that lets people track their activity, whether that's running or doing gymnastics.

Combined with the fitness services it already owns, Under Armour says the deals give it access to "the world's largest digital health and fitness community", with 120 million registered users. And the more people log and share what they do, the more Under Armour will learn about them.

"It's a piece in the puzzle toward having a total picture of the athlete," said Kevin Plank, Under Armour's CEO, in a conference call Wednesday. That includes how much they sleep and exercise, what they put in their body and their nutrition needs, he said.

In today's data-driven economy that could be some very valuable data, and it steps up the competition with rivals such as Nike, as well as a myriad of technology firms tackling digital health.

Under Armour hopes to use the information to expand sales of its clothing, hiking shoes and other products. It "provides an opportunity to build long-term relationships with consumers, and ultimately we think we're going to sell a lot more shirts and shoes," Plank said.

Endomondo could help it grow its sales overseas, too, where more than three-quarters of the app's 20 million users reside.

Under Armour already operates an online health and fitness network called Record, where people can store data from popular devices like the Fitbit and Jawbone. It also owns the workout app MapMyFitness, which it bought in 2013. Those existing offerings have 31 million registered users, so the acquisitions will increase the number fourfold.

It wasn't clear how many of those are active, regular users, and the company didn't immediately respond to a request for comment.

Under Armour will have to be careful how it makes use of all that data. Government regulators have already signaled that they have concerns about how health data is used and shared with third parties for marketing purposes.

Under Armour completed its acquisition of Endomondo in January, and the MyFitnessPal deal is expected to close by the end of March, it said. The deals were announced with the company's fourth quarter earnings, in which sales grew by 31 per cent to $US895 million.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Are you sure they wont start a platform that the cheese is white, pretty sure that is racist

Hite

New brand name for Coon Cheese revealed

Read more

Real digital transformation requires reshaping the way the business create value for customers. Achieving this requires that organization...

ravi H

10 lessons Telstra has learnt through its T22 transformation

Read more

thanks

Lillian Juliet

How Winedirect has lifted customer recency, frequency and value with a digital overhaul

Read more

Having an effective Point of Sale system implemented in your retail store can streamline the transactions and data management activities....

Sheetal Kamble

​Jurlique’s move to mobile POS set to enhance customer experience

Read more

I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...

Catherine Stenson

Have customers really changed? - Marketing edge - CMO Australia

Read more

Blog Posts

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Why does brand execution often kill creativity?

The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in