Retail Health, Health Tech

Under Armour to sell MyFitnessPal for $345M

The company reached an agreement to sell the health app to Francisco Partners after acquiring it for $475 million in 2015.

Under Armour plans to shed two health apps as it faces a retail slowdown due to Covid-19.

Five years after acquiring health app MyFitnessPal for $475 million, Under Armour plans to sell the company for $345 million. Under Armour announced on Friday that it would sell the platform to private equity firm Francisco Partners.

MyFitnessPal, which has been around since 2005, has drummed up more than 200 million users. Its main feature is a database of foods for nutrition tracking, but it also has a paid subscription version with nutrition plans and recipes.

Under Armour President and CEO Patrik Frisk said the planned sale was part of a shift by the company to simplify its brand.

“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,” he said in a news release. “Additionally, it affords us investment flexibility to drive greater return and value to our shareholders over the long-run.”

Under Armour will also shut down Endomondo, a fitness tracking app it acquired for $85 million at the same time as the MyFitnessPal acquisition. It will still keep MapMyFitness, a platform that lets runners and cyclists track their workouts that is also part of Under Armour’s connected fitness segment.

In its most recent quarterly filing, the company shared that it expects revenue to be down for the year, as foot traffic in stores remains slow. It also expects an operating loss of between $800 million and $860 million for 2020.

Photo Credit: Hiraman, Getty Images

 

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