Adidas acquires fitness tracking app maker Runtastic for $240 million

Runtastic is available in 18 languages and operates a wide portfolio with over 20 apps covering a variety of endurance, health and fitness activities.

In line with the Group’s strategic business plan “Creating the New”, this acquisition reinforces the adidas Group’s commitment to inspire and enable athletes of all levels to harness the power of sport in their lives.

Interest in the companies that make wearable technology is heating up as more consumers use their devices. Its the latest move by Herzogenaurach, Germany-based Adidas to make up lost ground in the market, and follows Under Armours acquisition of two health and fitness apps for $560 million in February.

Adidas bought the privately owned Runtastic from its majority shareholder, the digital publishing house Axel Springer, and other investors, including the founders of Runtastic.

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.

Nike Inc was a pioneer in fitness tracking, partnered with Apple Inc on the Nike+ running programmes for the iPod and iPhone and launching the FuelBand in 2012.

Unlike other free fitness app companies, however, Runtastic has been profitable from the starting gate, Adidas said, which helps explain the price tag. The company reports second-quarter earnings tomorrow.

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.

Its competitor Nike was a leader in fitness tracking. The purchase comes only a few months after its U.S. rival Under Armour Inc. invested $710 million in its Connected Fitness platform. “The key to leverage will be how well they brand Runtastic with Adidas”, he said.