Sportswear brand Adidas Group has acquired European mobile fitness tracking app startup Runtastic in a deal worth $239 million. Post acquisition, Runtastic becomes a wholly owned Adidas company, although its employees will remain in the same offices across Australia and San Francisco.
“Both companies firmly believe that together we can build a unique product portfolio and unparalleled customer journey for our existing community members and future users,” wrote Runtastic CEO & Co-Founder Florian Gschwandtner in a blog post.
“We will continue deliver further optimizations, unique content and a highly-anticipated new app by the end of the year,” he added.
With this acquisition, Adidas is looking forward to grow “a highly engaged athlete user base and leverage the power of its broad product portfolio and the acquisition is about bagging 70 million customers to cross-sell its other fitness products,” said Adidas Group CEO Herbert Hainer.
Founded in 2009, Runtastic app is a fitness-tracking software that monitors runs, jogs, bike rides, and walking. It uses GPS to map users workouts in real time. It will also calculate user time, distance, pace, elevation change, and calories. It even features a personal diary to help them monitor progress as well as a voice coach for audio feedback. Runtastic app has seen 140 million downloads and 70 million registered users globally.
While Adidas does have a myriad of digital products including wearables, apps, and clothes, Nike perhaps has the more notable alignment in the GPS fitness tracking domain: Nike+. This acquisition will finally give some substantial foothold to Adidas in the digital fitness tracking market to compete against Nike+.Category Business