In its earnings release this afternoon, Under Armour announced that it would be acquiring two mobile app companies, MyFitnessPal and Endomondo. Combining that with its own users, the company says it will have a digital health community that is 120 million strong. Both apps had been experiencing strong growth and were poised to sit atop the health and fitness ecosystems which are becoming standard on smartphones running Android and iOS. Consider this the first big win for the quantified self, an industry which Silicon Valley believes is going to be everywhere in the near future.
Under Armour is paying $475 million for San Francisco-based MyFitnessPal, which had raised $18 million in funding and boasted 70 million registered users. Endomondo, based in Denmark, was acquired for $85 million and claimed 20 million registered users. Both companies allowed users to set goals, track activity, and chat with a community to exchange advice and support. MyFitnessPal, which is focused on nutrition, boasted a massive database of recipes submitted by users that matched your available ingredients to your daily calorie count.
"By combining a community of 120 million unique registered users, we are developing a digital ecosystem that provides us with unparalleled data and insight into making every athlete better," said Under Armour CEO Kevin Plank. "Understanding the evolving needs of our athletes — how they interact, how they consume, and ultimately how they strive to live healthier lifestyles — will be key inputs to forging deeper relationships and becoming more relevant to how the consumer shops."
"This is the first inning."
"This is the first inning. The amount of data that we will be able to collect about ourselves is just exploding," says MyFitnessPal founder and CEO Mike Lee. "You have this incredible device that is with your 24/7...all of that combined means you will essentially be able to have 24/7 a coach, 24/7 a doctor, with you at all times to help you make healthier decisions."
If you want to get some more detail on where MyFitnessPal came from, the founders sat down recently to talk about its origins. They are chatting with their own investors, so no hardball questions here. But they are a fairly unique company that was bootstrapped for its first eight years, and was profitable before taking any venture capital funding.