This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Under Armour Scores its First Deal With MapMyFitness

NEW YORK (The Deal) -- Under Armour (UA - Get Report), a purveyor of athletic footwear, apparel and accessories, announced its first acquisition on Thursday, Nov. 14, buying MapMyFitness Inc. for $150 million.

Baltimore-based Under Armour will initially finance the deal with borrowings under its revolving credit facility and cash on hand as it evaluates longer-term funding options, it said a statement announcing the deal, which is expected to close by the end of 2013. Guidance for 2013 and the outlook for 2014 provided by Under Armour will not be affected, the buyer said.

Austin, Texas-based MapMyFitness is a provider of apps, for the iPhone and mobile devices utilizing Google's (GOOG)

"We will build on the community of over 20 million registered users that MapMyFitness has cultivated in the connected fitness space, and together we will serve as a destination for the measurement and analytics needs of all athletes," Kevin Plank, chief executive of Under Armour, said in a statement.

"Now we are better positioned to design open, digital products for the athlete of tomorrow and become more proactive in providing solutions that will help people across the world lead healthier lifestyles," he said.

An industry source said Under Armour is "always in the market for the latest and greatest technology" that will help it to, essentially, "make athletes better," indicating that more acquisitions in the space may be on the horizon for the company.

Generally, this person said to expect a number of technology-related deals in the fitness center and nutritional food or diet sectors in the coming months.

Driving this trend, the source said, is that digital is now where the customers exist. Consumer-related health, wellness and fitness companies, this person said, have an "acute awareness of and sense of urgency around" investing in technology.

Under Armour could use MapMyFitness as a tool to increase brand awareness, or even as something that could be its own profitable business, although the ultimate goal for the acquisition wasn't yet clear, the source said.

In June 2012, MayMyFitness raised a B round of $9 million in venture funding led by Austin Ventures and Milestone Venture Partners, according to the company Web site. Competitor Group and Running Specialty Group also participated in the second round. Prior to that, the fitness technology company had raised an A round of $5 million also led by Austin and Milestone.

Investment bank Peter J. Solomon Co. provided financial advice to Under Armour, and King & Spalding provided legal advice. MapMyFitness' legal adviser was Wilson SonsiniGoodrich & Rosati and its financial adviser was Allen & Co.

Written by Richard Collings.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
UA $76.92 -1.00%
AAPL $132.04 1.87%
FB $80.55 1.50%
GOOG $539.80 1.40%
TSLA $247.43 -0.01%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs