- Sports equipment company Under Armour Inc (NYSE: UA) (NYSE: UAA) announced it is selling MyFitnessPal to Francisco Partners for $345 million. And the company is sunsetting the Endomondo platform.
Sports equipment company Under Armour Inc (NYSE: UA) (NYSE: UAA) announced it is selling MyFitnessPal to Francisco Partners for $345 million. Under Armour had acquired MyFitnessPal for $475 million back in February 2015. Under Armour also revealed that it is going to sunset the Endomondo platform, which it bought for $85 million around the same time.
The MyFitnessPal deal of $345 million is inclusive of the achievement of potential earn-out payments and subject to working capital and other customary adjustments. And the transaction — which is expected to close in the fourth quarter of 2020 — is subject to customary closing conditions and regulatory approvals.
PJ SOLOMON has served as exclusive financial advisor to Under Armour on the transaction. And King & Spalding LLP is acting as legal advisor. Paul Hastings LLP and Kirkland & Ellis LLP are acting as the legal advisors to Francisco Partners.
MyFitnessPal is currently reported within Under Armour’s Connected Fitness segment — which also contains the MapMyFitness and Endomondo platforms. The Endomondo platform’s operations will be shut down towards the end of 2020.
The MapMyFitness platform — which includes MapMyRun and MapMyRide — will remain a “crucial element of Under Armour’s digital strategy, as does its connected footwear business.”
KEY QUOTES:
“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. 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.”
— Under Armour President and CEO Patrik Frisk
“MyFitnessPal supports over 200 million users in their ongoing health and fitness journeys and we are excited to partner with the business for its next stage as a standalone company to continue a strong history of recurring revenue growth, organic user acquisition and a unique consumer proposition.”
— Christine Wang, Principal at Francisco Partners
