Athleticwear retailer Under Armour has entered into a definitive agreement to sell its MyFitnessPal platform to investment firm Francisco Partners in a $345 million deal.
Under Armour acquired the health tracking app for $475 million in 2015. The app has grown from about 80 million users to over 200 million in the last five years, according to an announcement.
“As part of our ongoing transformation, we are committed to actively managing our business to ensure that our strategies and assets are prioritized to connect even more deeply with our target consumer – the Focused Performer,” Under Armour President and CEO Patrik Frisk said in a statement. “This announcement reduces the complexity of our consumer’s brand journey by empowering sharper alignment with our long-term digital strategy as we work towards a singular, cohesive UA ecosystem. Additionally, it affords us investment flexibility to drive greater return and value to our shareholders over the long-run.”
Mike Lee started MyFitnessPal as a desktop product in 2005, and it launched on iPhones in 2009. Under Armour also acquired Endomondo, a once-popular fitness tracking app in Europe, for $85 million around the same time as MyFitnessPal— the company will be discontinuing Endomondo’s operations at the end of 2020.
Under Armour will, however, continue on with the MapMyFitness platform — which includes MapMyRun and MapMyRide — which it acquired in 2013 and integrates with a line of connected footwear.
The COVID-19 pandemic has put a strain on the Baltimore-based company. Revenue was down 41% year-over-year in the second quarter, though that did exceed analyst expectations slightly.
Under Armour is also caught up in high profile legal battles with UCLA and Cal as it seeks a way out of its costly sponsorship deals with the schools, worth about $280 million and $86 million, respectively.