Adidas Buys Popular Fitness App Makers Runtastic For €220 Million
The developers of several popular fitness apps, Runtastic, has today been acquired by Adidas group. The move was made for €220 million and according to the two companies will assist Adidas to grow it’s collection of connected products and apps. As fitness wearables quickly become more and more popular, it makes complete sense for Adidas to join in on the action with a very strong software component to tie into their own connected products and third party options as well. The deal between the two companies has already been signed and closed.
adidas Group acquires Runtastic
August 5, 2015 – Herzogenaurach, Germany / Linz, Austria – The adidas Group and runtastic GmbH today announced that adidas AG has acquired all outstanding shares of runtastic GmbH. The transaction values Runtastic at an enterprise value of € 220 million.
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. Runtastic’s vision for 2020 that every individual lives a more aware and active lifestyle leading to a longer, happier life means the adidas Group has found a perfect partner that fully understands the potential of the convergence of sport, digital and data in an always connected and always on-demand world.
The adidas brand was the first in the industry to comprehensively bring data analytics to the athlete. With decades of continuous investment in sports science, sensor technology, wearables and digital communication platforms, there is no other sports company that has done more to innovate sports and change the game through technology. adidas’ variety of digitally enabled products such as balls, wrist devices, apparel, shoes, web and phone apps goes unmatched. No other sports company has the diversity of sports and fitness activity coverage and understanding of data related to athletes’ physiology and motion in play – from pro athletes, world record holders, professional sports and college teams to athletes of all levels right down to kids in gym class.
Combining Runtastic’s and the adidas Group’s capabilities brings the adidas Group in a prime position to unleash its knowledge of sport. Runtastic’s fast pace, dynamism and high energy will speed up the adidas Group’s ability to reach both partners’ combined vision to make sport inspiring and part of everyone’s lives – creating unexpected sports experiences that will resonate and clearly stand out in a crowded and constantly changing landscape.
Founded in 2009 and headquartered in Pasching near Linz, Austria, Runtastic has shown tremendous growth in a short period of time. With more than 140 million downloads and around 70 million registered users, Runtastic has a strong and unique industry position. Available in 18 languages, Runtastic is already one of the most diverse global players in the health and fitness app market, operating a multi-app strategy with over 20 apps covering a wide variety of endurance, health and fitness activities. Through a highly engaged and active user base, the company has already established solid revenue and earnings streams. With high user satisfaction, an impressive pipeline of innovative concepts and relentless speed to market, momentum is expected to remain robust in the coming years.
With 50.1% ownership, Axel Springer SE through its subsidiary Axel Springer Digital Ventures GmbH was the major shareholder of runtastic GmbH. Other main shareholders were Austrian business angel Dr. Johann Hansmann and company founders Florian Gschwandtner, Alfred Luger, René Giretzlehner and Christian Kaar who will continue to run Runtastic within the adidas Group.
“Digital technologies are providing new capabilities and insights to help athletes of all levels take control of their sporting destiny – whether improving their performance, sharing their experiences, or creating their own great social moments of sport,” commented Herbert Hainer, CEO of the adidas Group. “This investment will add considerable value on our journey to deliver new world-class sports experiences. In addition, it offers the opportunity to grow a highly engaged athlete user base and leverage the power of our broad product portfolio. 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 is the perfect strategic partner for Runtastic and we are very eager to leverage our business in new and unique ways in the future,” said Florian Gschwandtner, Runtastic CEO and Co-Founder. “By bringing cutting-edge input from our leading position in the digital space to one of the great world leaders in the sports and fitness industry, I am personally looking forward to pleasing and surprising new and loyal users with the best products in the world. Together, we will make exceptional and unexpected things happen.”
Signing and closing of the transaction have both taken place simultaneously, today. In connection with the transaction, Deutsche Bank is acting as financial advisor to the adidas Group, and Ashurst LLP and Schoenherr are serving as legal counsel. Allen & Company LLC is acting as financial advisor to Runtastic and Milbank Tweed Hadley & McCloy LLP and 42law are serving as legal counsel.