Sports apparel company, Under Armour’s made a purchase of the popular diet-tracking app, MyFitness Pal, and personal trainer app, Endomondo, for a collective price of US$560 million.
To you, that might be a ton of money to splurge on a bunch of apps. But to Under Armour, it’s a move that could potentially make it a key player in the fitness space regardless of if it’s online or offline.
With both acquisitions, Under Armour’s got the capacity to monopolise the health segment – which a large number of people are into these days.
If the company decides to merge the offerings of both apps and make smart sportswear, it would give it the power to offer wearable technology that ties up with a personalised diet and training app.
Under Armour’s also recently announced a strategic partnership with HTC (at the CES 2015 trade show in Las Vegas) that will see some of HTC’s future products work seamlessly with UA Record – the newest addition to Under Armour's Connected Fitness network.
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Obviously, this means Under Armour’s pushing hard to not only promote its sports gear, but also leverage its power within the fitness tech space. Also, both acquisitions will give the company access to a digital user base of more than 120 million users, giving the company a leg up as compared to some of its other competitors.
"Endomondo and MyFitnessPal… are ideal partners to enable Under Armour to provide data-driven, proactive solutions to help athletes of all levels lead healthier and more active lifestyles," Under Armour chairman and CEO, Kevin Plank, said in a statement.
As of now, no plans have been revealed, but we expect a serious assault on the market in the coming months.