Sales of fitness devices, apps and services are expected reach $5 billion by 2016. It’s no wonder Under Armour will purchase MapMyFitness for $150 million.
In a move that seems to combat Nike, Under Armour will make the move to acquire MapMyFitness, which is a popular workout application company. Part of the intrigue behind the move is that MapMyFitness has 20 million registered users – nine million of which use its service on a monthly basis and 700,000 of which use it daily.
Kevin Plank, Under Armour’s CEO, added, “I wouldn’t consider this an app company; rather a community first and foremost.”
Because MapMyFitness is an open platform and acquires about 200,000 sign-ups each week, this opportunity sounds like a quality one for Under Armour.
Under Armour Makes A Move to Compete With Nike And Adidas
Under Armour started out as a sports apparel company. While the company just recently stepped into the world of shoes, it has some major competition in Nike and Adidas.
Under Armour may also be entering the fitness game later than both its competitors as well, but better late than never. Kevin Plank explains the deal to buy MapMyFitness:
“This partnership is about Under Armour enhancing our digital expertise to drive the future of performance innovation for the global athlete community,”
It has been reported that Under Armour will keep MapMyFitness running as a subsidiary in its current Texas headquarters. This will certainly thrust UA into the competition with Nike and Adidas.
Does Under Armour Now Have The Upper Hand?
With a market that is seeing releases weekly, wearable tech has become the “hot hand” in the industry. Sports and fitness monitoring makes up about two-thirds of this market. With Under Armour capitalizing on its recent tech acquisition, they are looking to close the gap between itself and its competitors. Sean Naughton, a Piper Jaffray analyst, said:
“MapMyFitness products are device agnostic and it makes Under Armour an immediate leader in the fitness tracking space,”
Do you think this buyout by Under Armour will produce some great products to enhance its brand?
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