Published on : Feb 26, 2015
Baltimore based Under Armour has made earnest attempts in becoming one of the largest players in the fitness apparel market. In their latest venture, the company bought out MyFitnessPal for US$475 million on February 4, 2015. The company also purchased a smaller running app Endomondo for US$85 million.
MyFitnessPal is a free fitness app that allows a user to keep a track of his/her calorie count and food intake. It is primarily used by personal trainers and other fitness pros. The app works with a vast array of health related apps such as Garmin, Jawbone, and Fitbit. The app currently has 45 million active users and is perceived to have a key plus point of an extremely popular API. Many health apps have a direct connection to the data links on MyFitnessPal.
Acquiring MyFitnessPal and Endomondo will allow Under Armour to cultivate its digital user base to reach beyond 120 million, as said by the company’s spokespersons. There are currently at least 120 million users linked to the apps that are owned by Under Armour. The company claims that they have created the largest digital and health community in the world.
The company is expected to see almost 50 per cent in growth of customers. The total user base currently includes 72 million women. The fitness apparel maker said that they expect an increase in sale of women’s apparel and shoes. It will be a key growth driver for overall sales marked to equal and even surpass their men’s business.
Under Armour overtook Adidas last fall to become the second largest sportswear brand in the U.S., led by Nike. The Baltimore brand is still far behind Nike and hopes to bridge the gap through its app acquisitions.