Sportswear brand, Adidas Group wants to dominate the health and fitness space and with its recent acquisition of fitness app company, Runtastic, it seems like their plan is coming to life.
The deal seems like it’s a good idea for the team at Runtastic too since it now values the Pasching, Austria company at €220 million (approx. $240 million).
As part of the deal Runtastic will remain its own entity within the adidas Group and continue to operate from its current offices in Linz, Austria, Vienna and San Francisco.
“We will continue deliver further optimizations, unique content and a highly-anticipated new app by the end of the year,” Florian Gschwandtner, CEO and co-founder of Runtastic said in a blog post.
Co-founded in 2009 by Gschwandtner and co-founders Christian Kaar, Rene Giretzlehner and Alfred Luger, Runtastic has over 20 fitness, health and endurance apps under its belt, and has also created a suite of wearables and fitness trackers.
Runtastic executives said their apps have brought in over 140 million downloads with about 70 million registered users at the point of acquisition, according to a TechCrunch report.
adidas Group CEO Herbert Hainer said the acquisition will bring 70 million customers to cross-sell the sportwear brand’s other fitness products saying in a statement that adidas looking to build “a highly engaged athlete user base” and draw on the power of its “broad product portfolio.”
“With our new partner, we’ve found the perfect match when it comes to taking our business to the next level and ultimately serving our community members in even better and smarter ways,” Gschwandtner said. “At Runtastic, we already have a lot of knowledge when it comes to apps and digital technology and with adidas Group as our trusted counterpart, and one of the most successful and most comprehensive sports companies in the world) there’s nothing we won’t be able to do when it comes to health and fitness offerings.”
The post Runtastic just got acquired by adidas Group appeared first on FashInvest.