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

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

The blogs are really appreciable and one can trust the knowledge and information provided in the writing.The article you do produce on a ...

Prince Arora

5 brand strategy lessons from Gelato Messina

Read more

Latest Podcast

More podcasts

Sign in