An early player in the rapidly expanding athletic apparel market, Under Armour is taking further steps to establish itself as a major competitor in the world of fitness-related software and hardware. On Wednesday the company announced that it shelled out $85 million and $475 million, respectively, to acquire Endomondo and MyFitnessPal, making them the third and fourth products in its suite of fitness apps.
In investing itself in the app space, the Baltimore-based brand is taking direct aim at athletic apparel competitors like Nike, which pulled the plug on development of its FuelBand tracker in favor of concentrating on software. Adidas, which launched a sneaker reservation app earlier this week, also has a fitness program called MiCoach.
As suggested by its sticker price, MyFitnessPal is the bigger and better known of the two, at 80 million registered (but not necessarily active) users compared to Endomondo's 20 million-person user base. But they bring complementary utilities: while MyFitnessPal focuses on meal logging powered by an extensive database of food products, the Copenhagen-based Endomondo is all about exercise tracking, supplementing that with motivational messages and community support.
Under Armour, which also sells fitness trackers and watches on its site, acquired MapMyFitness back in December 2013 and released its own platform, UA Record, in January of this year. The four apps tackle that one big goal — "health" — with varying degrees of similitude, and they'll no doubt be able to learn from each other now that they're under one roof. The question now is how Under Armour is going to combine (cannibalize) their functionality.
The brand just wrapped a very solid financial year, reporting Wednesday that it brought in $3.08 billion in revenue for 2014, a 32 percent increase on the year prior. As far as revenue growth goes, it's predicting a slower 2015 — something more like a 22 percent increase. Here's hoping that doesn't apply to its app game.