Half a billion for a sports app
Danish IT company Endomondo has sold its flagship mobile phone sports app to American sportswear manufacturer Under Armour for 575 million kroner.
The free personal trainer app, which is called 'Endomondo' like the company, is designed to track workouts, provide guidance and give audio feedback along the way.
30 million downloads
Thirty million people from all over the world have downloaded Endomondo since it was launched in 2008.
Some 20 million people are also registered as users on the company's site.
"It's amazing that what we have been working on for so many years has just been bought by a large American player," Christian Birk, the company's co-founder, told DR News.
"It shows that the vision we had seven to eight years ago was right."
Difficulties making profit
Although users have enthusiastically embraced the sports app, the company has had great difficulties making a profit.
Since the start, Endomondo has ended almost every year in the red.
In the fiscal year of 2013-2014, the company sustained a 1.3 million kroner loss.
Possibly thanks to the large number of users, the US sportswear brand sees great potential in Endomondo, in spite of the financial issues.