Under Armour Inc. agreed to buy MapMyFitness Inc. for $150 million as the maker of athletic apparel looks to compete with Nike Inc. in offering fitness buffs a way to measure their training and performance online.
MapMyFitness, founded in 2007, designs applications that allow athletes to record and share their workouts using global-positioning technology, according to a statement from Under Armour. Closely held MapMyFitness has about 20 million registered users worldwide, who can measure their training on more than 400 devices, sensors and wearables.
As consumers embrace fitness and technology, sports apparel makers are looking for ways to combine the two. Nike offers apps that work with devices powered by Apple Inc. and Google Inc. and currently controls 15 percent of the market among such users, while Austin, Texas-based MapMyFitness has about 5 percent, Piper Jaffray Cos. analysts said in a note.
“MapMyFitness products are device agnostic and it makes Under Armour an immediate leader in the fitness tracking space,” Sean Naughton, a Piper Jaffray analyst, wrote in the note. He has a neutral rating on Under Armour’s stock.
Runners and cyclists can use MapMyFitness to plot a training route in locations all over the world by entering their time and speed, while calculating the calories burned. They can also share their own progress with friends.
Under Armour will finance the acquisition initially under its existing revolving credit facility and cash on hand. The deal is expected to close by the end of the year.
“This partnership is about Under Armour enhancing our digital expertise to drive the future of performance innovation for the global athlete community,” Kevin Plank, Under Armour’s founder and chief executive officer, said in the statement.
Under Armour, based in Baltimore, rose 1.1 percent to $83.53 at the close in New York. The shares have gained 72 percent this year.