Adidas Group acquires Runtastic fitness apps for $240 million
By MoneyTimes
Aug 06, 2015 09:49 PM EDT
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An Adidas store is viewed in Manhattan on July 31, 2014 in New York City. The German sporting goods manufacture surprised investors with a profit warning on Thursday that lowered its shares by as much as 16%. Blaming currency issues, lower consumer spending in Russia, poor golf-equipment sales and other issues, Adidas said second-quarter net profit fell 16% from the year-earlier. (Photo : MoneyTimes)
Adidas bought Runtastic, a fitness tracking app for €220 million (equivalent to $240M) from Axel Springer, the company's strategic partner in Germany.
"Today marks the day when Runtastic joins the Adidas Group, connecting two unique and successful health & fitness leaders." Florian Gschwandtner, cofounder and CEO of Runtastic wrote in the company blog. He said the partnership will take the business to a whole new level, serving its community members.
The acquisition was valued $240 million. Aside from Axel Springer which holds 50.1% ownership, other shareholders include Dr. Johann Hansmann along with four founders.
"Digital technologies are providing new capabilities and insights to help athletes of all levels take control of their sporting destiny - whether improving their performance, sharing their experiences, or creating their own great social moments of sport," Herbert Hainer, the Adidas Group CEO said in a statement from the company website.
Adidas' business plan coincides with Runtastic's vision for 2020 which is to inspire people to have an active lifestyle for them to live longer. The company emphasized its commitment to motivate different levels of athlete and attach sports in each people's lives. Adidas Group had just found a partner that recognizes how important it is to involve sports into people's hi-tech lifestyle.
Headquartered in Austria, Runtastic was launched in 2009 by Florian Gschwandtner, Rene Giretzlehner, Christian Kaar and Alfred Luger. It expanded to other fitness platforms and services, driving people to stay in shape and monitor their health.
Runtastic offers complete details of user's fitness activity. It evaluates the speed, distance, time, calories and heart rate when walking, running, biking or doing other physical activities. Each member is encouraged to share their stats to its online community.
Runtastic app can be synchronized with other devices like Orbit wristband, Runtastic Heart Rate Combo Monitor, Runtastic Libra, Runtastic Running Beanie and GPS Watch/Heart Rate Monitor, as mentioned on the website.
Today, the app has 70 million subscribers and 140 million downloads available in 18 languages.