Adidas buys Runtastic in a deal reportedly worth $240 million

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

In a statement, Adidas said it “has found a flawless partner that fully understands the potential of the convergence of sport, digital and data in an always connected and always on-demand world”.

Founded in 2009 and headquartered in Pasching near Linz, Austria, Runtastic has shown tremendous growth in a short period of time.

Adidas already has a range of wearables, apps and clothes for this market, but Runtastic’s extra hardware, apps and huge install base, which is somewhere around the 70 million mark, could help the company gain a competitive edge.

The German multinational said that it has done with the acquisition process from majority owner Axel Springer, along with the company’s founders and an angel investor. The Runtastic app is offered in 18 languages and runs on a multi-app strategy made up of more than 20 apps that offer health, endurance, and fitness activities.

“Both companies firmly believe that together we can build a unique product portfolio and unparalleled customer journey for our existing community members and future users”.

Runtastic will continue to keep its offices in San Francisco and Austria and the company will continue to develop the application, apparently there are some major new features on the way. “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”.

Adidas has bought Runtastic, a European mobile fitness startup. Allen & Company LLC is acting as financial advisor to Runtastic and Milbank Tweed Hadley & McCloy LLP and 42law are serving as legal counsel.