Under Armour is branching out into the digital space.
The Baltimore-based activewear brand said today it would pay $150 million to acquire MapMyFitness, which makes popular GPS-based fitness tracking applications.
More than 20 million athletes use the tech firm’s MapMyRun, MapMyBike and other programs — and another 200,000 users sign up each week.
The company’s apps help runners, for instance, plot out their routes, track their progress and speed, and keep tabs on their friends’ workouts.
“This partnership is about Under Armour enhancing our digital expertise to drive the future of performance innovation for the global athlete community,” said Kevin Plank, founder and chief executive officer of Under Armour Inc. “We will build on the community of…users that MapMyFitness has cultivated in the connected fitness space, and together we will serve as a destination for the measurement and analytics needs of all athletes. Innovation has always been at the core of our company, and now we are better positioned to design open, digital products for the athlete of tomorrow and become more proactive in providing solutions that will help people across the world lead healthier lifestyles.”
MapMyFitness will operate as a wholly owned subsidiary of Under Armour and will continue to be based in Austin, Tex.
The deal is expected to close by the end of the year and will be paid for with borrowings under the company’s revolving credit facility, cash on hand or a combination of the two. Under Armour also plans to evaluate longer-term funding options for the transaction. The planned acquisition did not change Under Armour’s 2013 financial guidance and outlook for next year.