Case Study

Under Armour

Case Study: Under Armour Acquisition of MapMyFitness

Under Armour Overview
  • Under Armour is the leading sports performance and innovation brand
    • Offers men’s and women’s performance apparel, footwear and accessories for athletes worldwide
  • Under Armour had LTM Revenue of $2,155mm and LTM EBITDA $296mm as of September 2013
    •  Revenue and EPS CAGR since IPO in 2005: 31%
MyMyFitness Review
  • MapMyFitness is a fitness technology company that is the leader in “Connected Fitness,” offering online and mobile applications for tracking, mapping, analyzing and sharing personal workouts
  • Provides its users interactive tools to make fitness social, simple and rewarding
    • At acquisition, Company had over 20mm registered users and 9mm active users, providing it with one of the largest digital communities – and largest digital fitness community in the world
    • Over 83mm installations of suite of apps since launch in 2007 (a)
  • Flagship consumer brands – MapMyRun, MapMyRide, and MapMyWalk – are among the most popular fitness apps on iOS and Android
  • Open platform that lets users integrate with over 400 fitness tracking devices, sensors and wearables
  • Comprises multiple revenue streams:
    • Integrated marketing and advertising solutions
    • Premium consumer subscription products
    • SaaS platform that offers partner companies advanced fitness tracking technology, workout database, nutritional data and calorie calculators for their employees or customers
  • Database of over 160mm top running, cycling and walking routes worldwide
  • Total funding of approximately $20mm (b)
Transaction Details
  • Under Armour announced the acquisition of MapMyFitness for $150mm on November 14, 2013
    • Financed initially through combination of cash on hand and borrowings under existing revolving credit facility
  • Deal is expected to close by end of 2013
  • Under Armour’s 2013 guidance and preliminary 2014 outlook remain unchanged 
  • MapMyFitness will continue to operate out of Austin, TX headquarters as a wholly-owned subsidiary
  • PJ SOLOMON acted as financial advisor to Under Armour
Under Armour Rationale
  • Accelerate and enhance digital expertise and capabilities
    • Build upon current strategy of performance innovation by linking Under Armour to successful and innovative company and team
    • 100+ employees (65 engineers) to join Under Armour bringing proven technical ability in diverse set of web and mobile platforms
    • Better compete in newly established categories – connected fitness and wearable technology
  • Advance vision to create the ultimate digital community for all athletes and better serve the needs of athletes worldwide
    • Link the MapMyFitness global community of over 20mm athletes to the performance innovation upon which Under Armour built its company
  • Fuel growth through new avenues and channels
    • Reach both current and potential customers by leveraging the growing MapMyFitness community of active web and mobile users
    • Segment potential customers through new and targeted data provided by MapMyFitness suite of applications
Stock Price Reaction
  • Accelerate and enhance digital expertise and capabilities  

Source: Company press release and other publicly available information.
(b); excludes $3M announced financing in July 2012 that did not close.