Adidas acquires fitness app maker Runtastic for $240m

Adidas has been losing market share in sporting goods to its bigger U.S. rival and launched its own miCoach fitness device only a year ago.

The shoemaker Adidas announced Wednesday that it had acquired all outstanding shares of Runtastic, a European maker of fitness apps and wearable activity trackers, in a deal that valued Runtastic at 220 million euros ($239 million). Adidas designs and manufactures sports shoes, clothing and accessories.

Based in Austria, Runtastic was founded back in 2009 and its apps has had more than 140 million downloads and about 70 million registered users since.

The company now has over 20 health and endurance apps under the Runtastic banner, with products in the hardware space with as well. Runtastic’s vision for 2020 that every individual lives a more aware and active lifestyle leading to a longer, happier life means the adidas Group has found a ideal partner that fully understands the potential of the convergence of sport, digital and data in an always connected and always on-demand world, according to Adidas Group.

“This investment will add considerable value on our journey to deliver new world-class sports experiences”. Post acquisition, Runtastic becomes a wholly owned Adidas company, although its employees will remain in the same offices across Australia and San Francisco. Signing and closing of the transaction have both taken place simultaneously on 5 August. Companies like Under Armour which overtook Adidas as the second biggest sportswear maker in the United States had completed the acquisition of diet and exercise app MyFitnessPal for $475 million.