Adidas buys fitness app maker Runtastic

Signage for an Adidas outlet store is displayed in Simpsonville, Kentucky. The Runtastic deal, for an enterprise value of €220mn ($239mn), gives the sportswear maker inroads into 70mn registered Runtastic users, who use its smartphone and tablet software to track running, cycling and other pastimes, Adidas says.

Bloomberg/FrankfurtAdidas has acquired Runtastic, whose mobile apps let runners and other athletes analyse their workouts, as the sporting-gear maker tries to use online communities to boost sales and catch up with rivals Nike and Under Armour.The deal, for an enterprise value of €220mn ($239mn), gives the sportswear maker inroads into Runtastic’s 70mn registered users, who use its smartphone and tablet software to track running, cycling and other pastimes, Adidas said in a statement yesterday. It’s the latest move by Herzogenaurach, Germany-based Adidas to make up lost ground in the market, and follows Under Armour’s acquisition of two health and fitness apps for $560mn in February.The transaction “offers the opportunity to grow a highly engaged athlete user base and leverage the power of our broad product portfolio,” Adidas Chief Executive Officer Herbert Hainer said in the statement. The company reports second-quarter earnings tomorrow.German publisher Axel Springer SE was the majority owner of Pasching, Austria-based Runtastic, with 50.1%. Runtastic was founded in 2009 and its co-founders will continue to operate it, Adidas said. Deutsche Bank advised Adidas on the deal and Allen & Co advised Runtastic.