adidas has acquired Austria-based fitness app maker Runtastic for €220 million. The move is justified with adidas’ commitment to “inspire and enable athletes of all levels to harness the power of sport in their lives.”
Founded in 2009 and headquartered in Pasching near Linz, Austria, Runtastic has grown to more than 140 million downloads and around 70 million registered users. The company’s 20+ apps are available in 18 languages, covering a variety of endurance, health and fitness activities.
Runtastic’s 20+ apps are available in 18 languages, covering a variety of endurance, health and fitness activities.Runtastic’s previous owners were Axel Springer Digital Ventures with 50.1% stake, as well as Austrian business angel Dr. Johann Hansmann, and company founders Florian Gschwandtner, Alfred Luger, René Giretzlehner and Christian Kaar who will continue to “run Runtastic” within the adidas Group.
“This investment will add considerable value on our journey to deliver new world-class sports experiences,” commented Herbert Hainer, CEO of the adidas Group. “In addition, it offers the opportunity to grow a highly engaged athlete user base and leverage the power of our broad product portfolio. Therefore, I am very happy to welcome Runtastic’s passionate employees and their 70 million active athletes and sports lovers to the adidas Group family.”
Deutsche Bank is acting as financial advisor to the adidas Group, while Ashurst LLP and Schoenherr are serving as legal counsel. Allen & Company LLC is acting as financial advisor to Runtastic and Milbank Tweed Hadley & McCloy LLP and 42law are serving as legal counsel.
Beyond apps, Runtastic has launched an activity tracker of its own – Orbit.adidas is already versed in the mHealth market, having launched the miCoach Fit Smart band in July of last year. The company also decided to open-up its MiCoach platform last year, but we yet have to learn about some big integration.
On the other hand, Runtastic has been moving beyond apps, and has even launched a fitness tracker of its own – Orbit. Moreover, it also worked with Oculus VR on a VR-powered 7-minute workout app.
Aside from adidas, we’ve seen another major sports clothing maker “going digital.” Under Armour has first acquired MapMyFitness, and later Endomondo and MyFitnessPal.