Seed Capital sells Endomondo to Under Armour for $87.5m

The trade sale comes roughly four years after Danish VC Seed Capital first invested in Endomondo.

As a wholly owned subsidiary of Under Armour, Endomondo will continue to operate out of its headquarters in Copenhagen.

Under Armour will use the acquisition to expand its Connected Fitness platform, building on the 2013 acquisition of US-based MapMyFitness. The company also bought nutrition resource app MyFitnessPal for $475m, alongside its Endomondo acquisition.

Seed Capital's exit is the firm's third in six months, having completed two trade sales in the pharmaceutical space since November.

Alongside Sunstone Capital, it sold Galecto Biotech to Bristol-Myers Squibb for $444m, followed by the sale of Seed Capital and Novo's Contera Pharma to Bukwang Pharmaceutical a month later.

Previous funding
Endomondo's first raised capital in an $800,000 seed round from Seed Capital in December 2010.

The VC then led a $2.3m series-A for the company, following on with series-B and -C rounds in 2012, totalling around $2.7m.

In addition, Endomondo raised around $550,000 from angel investors between 2012 and 2013.

Company
Founded in 2007 by three former McKinsey & Company professionals, Endomondo develops the Endomondo Sports Tracker app.

The mobile app tracks users' performance data during sport activities, collecting information such as distance travelled, time and calories burned.

Based in Copenhagen, Endomondo has grown from 40,000 users in 2011 to around 24 million today, with the company claiming 30,000 new users join daily.

The company posted profits of DKK 1.3m in its last financial year.

People
Lars Andersen is general partner at Seed Capital and Mette Lykke is the co-founder and CEO of Endomondo.

Advisors
Equity – Goldman Sachs (M&A); King & Spalding, Kromann Reumert (Legal).
Company – Mooreland Partners (Corporate finance); Mazanti-Andersen Korsø Jensen (Legal).

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