adidas Group acquires Runtastic
Kuala Lumpur, 2 September 2015 – The adidas Group and runtastic GmbH today announced that adidas AG has acquired all outstanding shares of runtastic GmbH. The transaction values Runtastic at an enterprise value of € 220 million (over RM 900 million).
In line with the Group’s strategic business plan ‘Creating the New’, this acquisition reinforces the adidas Group’s commitment to inspire and enable athletes of all levels to harness the power of sports in their lives. Runtastic’s vision for 2020 is to have every individual living a more conscious and active lifestyle, leading to a longer and happier life. This proves that the adidas Group has found a perfect partner that fully understands the potential convergence of sports, digital and data in a world of vast connection and much demand.
The adidas brand was the first in the industry to comprehensively bring data analytics to athletes. With decades of continuous investment in sports science, sensor technology, wearables and digital communication platforms, the adidas Group is one of the forefront companies that have further innovate sports and change the game through technology. adidas’ variety of digitally enabled products such as balls, wrist devices, apparel, shoes, web control and phone apps goes unmatched. There are no other sports company that serves diverse sports and fitness activity coverage, as well as understanding of data related to athletes’ both physiology and motion in play – from pro athletes, world record holders, professional sports and college teams to athletes of all levels right down to kids in gym classes.
Combining the capabilities of both partners, the adidas Group is put in a prime position to unleash its knowledge of sports. Runtastic’s fast pace, dynamism and high energy will speed up the adidas Group’s ability to reach both partners’ equal vision to make sports inspiring and part of everyone’s lives. With the ever changing landscape, this partnership’s mission is to create unexpected sports experiences that will resonate and stand out in the world of applying technology into sports.
Founded in 2009 and headquartered in Pasching near Linz, Austria, Runtastic has shown tremendous growth in a short period of time. With more than 140 million downloads and around 70 million registered users, Runtastic has a strong and unique industry position. Available in 18 languages, Runtastic is already one of the most diverse global players in the health and fitness app market. It is operating on a multi-app strategy with over 20 apps covering a wide variety of endurance, health and fitness activities. Through a highly engaged and active user-base, the company has already established solid revenue and earning streams. With high user satisfaction, an impressive pipeline of innovative concepts and relentless speed to market, momentum is expected to remain robust in the coming years.
Holding 50.1% ownership, Axel Springer SE was the major shareholder of Runtastic GmbH through its subsidiary Axel Springer Digital Ventures GmbH. Other main shareholders were Austrian business angel Dr. Johann Hansmann, and company founders Florian Gschwandtner, Alfred Luger, René Giretzlehner and Christian Kaar who will continue to run Runtastic within the adidas Group. “Digital technologies are providing new capabilities and insights to help athletes of all levels take control of their sporting destiny – whether improving their performance, sharing their experiences, or creating their own great social moments of sport,” said Herbert Hainer, CEO of the adidas Group. “This investment will add considerable value on our journey to deliver new world-class sports experiences. Besides that, it offers the opportunity to grow a highly engaged athlete user-base and leverage the power of our broad product portfolio. Therefore, I am very happy to welcome Runtastic’s passionate employees and their 70 million active athletes and sports lovers to the adidas Group family,” added Hainer.
“adidas is the perfect strategic partner for Runtastic and we are very eager to leverage our business in new and unique ways for the future,” said Florian Gschwandtner, Co-founder and CEO of Runtastic. “By bringing cutting-edge input from our leading position in the digital space to one of the great world leaders in the sports and fitness industry, I am personally looking forward to pleasing and surprising new and loyal users with the best products in the world. Together, we will make exceptional and unexpected things happen,” continued Gschwandtner.
Signing and closing of the transaction have both taken place simultaneously. In connection with the transaction, Deutsche Bank is acting as financial advisor to the adidas Group, and Ashurst LLP and Schoenherr are serving as legal counsel. Allen & Company LLC is acting as financial advisor to Runtastic, Milbank Tweed Hadley & McCloy LLP and 42law are serving as legal counsel.
The Runtastic mobile app is now available for download:
|For Apple||Runtastic on Apple App Store|
|For Adroid||Runtastic on Google Play Store|
For more information, please visit our corporate website: www.adidas-Group.com
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