Under Armour Acquires MyFitnessPal and has become the largest digital fitness company in the world
$475mn. That’s what Under Armour announced it will be shelling out for MyFitnessPal, just over a year after acquiring MapMyFitness for $150mn. Combined with last month’s acquisition of Endomondo for $85mn, Under Armour has just laid down the gauntlet in digital health & fitness for everyone from Nike to Daily Burn.
Let’s take a look at what Under Armour acquires for $705mn.
- MapMyRun first launched in 2007 and gave users a way to visually map out their runs. From this beginning, the company eventually spun out a few different MapMy brands, all under the MapMyFitness umbrella, including MapMyRide, MapMyHike, MapMyWalk, and even MapMyDogWalk (yes, really).
- Being one of the first fitness apps to market helped propel the MapMy brands to 9 million users by 2012, and a total funding of just over $23mn accelerated their user base to nearly 20mn when UA acquired them.
- This was the signal that Under Armour was going all in on digital, even holding demo days since the MMF purchase for prospective partners and acquisition targets in the consumer internet and hardware spaces.
- MyFitnessPal actually launched before MapMyFitness, all the way back in 2005. It’s always been known as a self-tracking calorie counter and food database. As of 2014, some sources claim that MFP had as many as 50mn registered users and a database of over 3.5mn foods.
- Total funding for MFP prior to it’s Under Armour adoption was $18mn. MFP used that to acquire this little-known start-up called Sessions, one of the first companies to make some solid headway in the virtual coaching space.
- With MFP, Under Armour now gets an enormous audience, the largest online food database out there, and diet tracking tools to complement MapMyFitness’ fitness tracking.
- Endomondo is based in Denmark and has a significant international audience. Launched in 2008, the app has done a great job with integrating a competitive/social element with tracking.
- At a total funding of $8mn and purchase price of $85mn, this acquisition is dwarfed by the other deals. UA paid nearly double for the same sized user base as MMF (20mn).
- Endomondo refers to itself as the Personal Trainer in your pocket. Couple this with the social and competitive elements, Under Armour has added a whole new layer of connectivity, not to mention a solid entry point into international markets.
So where does Under Armour go from here? None of these companies produce hardware, which seems like a logical direction for Under Armour to go in considering how much more sophisticated devices are becoming (the days of the glorified pedometer are about to end).
Would Under Armour kill off these brands and maintain them all as Under Armour Connected Fitness? Unlikely, considering how large their respective user bases are. More likely, there will be some light backend integration, funneling of users between products, and of course UA branding added to everything
One other interesting thing to point out is that aside from hardware, UA could be dipping a toe into the online coaching space. Something to think about for fitness professionals, as there may be another opportunity there.