adidas AG (ADR)(OTCMKTS:ADDYY) witnessed a massive move in the overnight trading session. The stock rallied by close to 8 percent on the back of 3 times the average daily volumes indicative of the shift of momentum towards the buy side. The stock currently trades above all important daily moving averages. The stock has been in a strong uptrend and has been forming higher highs and higher lows, which is pointing towards the fact that bulls are in total control at the moment. Traders believe the stock could head to levels of $50 in the near term. The momentum indicators have given a fresh buy signal.
The adidas AG (ADR)(OTCMKTS:ADDYY) group has decided to acquire all the outstanding shares of Runtastic GmbH, a fitness app development company. As per the reports, the transaction value of this acquisition is expected to be around €220 million.
Strategic Acquisition Decision By adidas
adidas has always tried to spread the awareness about positive impacts that sports can have in one’s life. With this acquisition, the company has taken one more step in the direction of inspiring athletes from all walks of life to instill the power of sports in their day to day routine. Runtastic’s vision for 2020 is to inspire every individual living an active lifestyle, leading to happier and longer lifespan. With this vision, Runtastic is the perfect strategic partner for adidas.
adidas has been investing in sports science, wearable technology, sensor technology, digital communication platforms and other related fields for years to ensure that each individual can benefit from sports. There is no other sports company that has done more investment in this field than adidas. As of now, it deals into many different verticals like apparel, wrist devices, web apps, shoes, phone apps, etc. adidas aims to offer products and services that can suit the requirements of young kids, athletes, world-record holders, college teams and other people who are directly or indirectly involved in sports.
Runtastic is a leading name in fitness management app field. Runtastic’s technological knowledge and adidas’ years of experience in the sports management field can help the latter make a significant difference in this field.
Runtastic was founded in 2009 in Austria. It’s headquarter is located in Pasching near Linnz, Austria. The company has over 70 million registered users at present, whereas 140 million people have downloaded Runtastic app in their smartphones. There are 20 different apps under Runtastic brand available in the market at present, with more such products are to be launched in the future.
adidas looks forward to setting new benchmarks in sports management field with the help of Runtastic in the coming months.