The Adidas Group has just announced that it has acquired all the outstanding shares of the Runtastic GmbH at an enterprise value of €220 million or over $240 million, according to a press release issued by Adidas.
The acquisition of Runtastic, a European maker of fitness apps and wearable fitness tracker, enhances Adidas' technology in combining data and analytics, and sportswear and equipment.
Florian Gschwandtner, CEO and co-founder of Runtastic, said in his post in Runtastic's blog, that they have found the perfect partner, in Adidas, to take their business to the next level.
"We already have a lot of knowledge when it comes to apps and digital technology," he said. "With the Adidas Group as our trusted counterpart, there's nothing we won't be able to do when it comes to health & fitness offerings."
He also added in the blog post that both companies believe they can provide a unique portfolio of products for their existing and new customers.
In the press release, Adidas agrees that Runtastic's vision "that every individual lives a more aware and active lifestyle leading to a longer, happier life," makes them the perfect partner for their business.
"The Adidas Group has found a perfect partner that fully understands the potential of the convergence of sport, digital and data in an always connected and always on-demand world," the company said.
The New York Times adds that the deal with Adidas and Runtastic follows the successful initial public offering of Fitbit last June.
Fitbit makes wristbands that measure heart rate, pulse and other fitness metrics.
The global market for wearable devices is expected to grow to 72.1 million this year, from the 26.4 million in 2014, according to a report from the International Data Corporation last June.
Adidas Group has acquired Runtastic from Axel Springer, who has been on board since October of 2013, and from all Runtastic founders, according to Gschwandtner's blog post.
