Sport gear producer, Adidas acquires mobile fitness startup Runtastic to even up differences between their products and competitors’ offers. The deal has been valued at EUR 220 million, according to sources who are familiar with the recent purchase of the Austrian company.
Runtastic is an Austrian-based company developing mobile fitness hardware and software. The company has rapidly evolved ever since their first products have been launched on the market. Adidas has decided to acquire the startup because they hold some of the most entertaining fitness trackers, sports-based social network platforms and online services. The company offers assistance on the Internet to customers who would like to follow a constant fitness routine.
Adidas has long flirted with the idea of a company’s acquisition, but they had difficulties determining which enterprise was more appropriate for their future plans. Market analyses have revealed that Runtastic would represent a good investment, particularly since mobile fitness trackers have become incredibly popular among producers of sport equipment.
The initiator of this new trend has been market leader Nike, which was the first to introduce Apple’s fitness tracking technology in their sports collections. Thus, there are now many running apps under the Nike+ category, where customers can find useful programs for their iPods and iPhones.
It is unclear yet where Adidas’ new investment may lead in a couple of years. The companies did not make other declarations in relation to the new deal, but only limited themselves to express their optimism and enthusiasm for the new agreement.
Runtastic’s CEO Florian Gschwandtner told the press that there are many projects and ideas that they plan to make real in the following period. The new ownership will most likely lead to the creation of a unique product that will reward former customers for their fidelity and attract new users, as well.
This is not the first effort that Adidas has made to regain its leading position on the market. Last year, the sports gear producer has launched its own fitness tracker, miCoach, but the initiative has not been very successful.
Under Armour Inc., on the other hand, is going through a very good period. The firm was labeled as the second sportswear maker in the United States in 2014, slightly outrunning veteran Adidas. Under Armour Inc. is now interested in developing its own online fitness platform.
For this reason, the company has purchased exercise app MyFitnessPal and social network Endomondo. These moves have allowed the enterprise to build an online app of 120 million users, the largest fitness community on the Internet at present.
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