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.