Under Armour has reached a deal to sell MyFitnessPal to Francisco Partners for $345 million, including earn-out payments.
In a statement, Under Armour said it was selling the platform to simplify its business and connect more deeply with its target consumer.
Under Armour paid $475 million for MyFitnessPal in 2015. The company said it was also winding down its social fitness network, Endomondo.
“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,” chief executive officer Patrik Frisk said. “Additionally, it affords us investment flexibility to drive greater return and value to our shareholders over the long-run.”
Both Endomondo and MyFitnessPal are in the company’s Connected Fitness segment. Under Armour said its MapMyFitness platform, which includes MapMyRun and MapMyRide, remains a “crucial element of its digital strategy.”
Under Armour acquired Endomondo platform for $85 million at the same time it acquired MyFitnessPal.
The company reported a $39 million quarterly profit Thursday after losing a combined $773 million in the last two quarters. Revenues were flat at $1.4 billion for the quarter ended September 30. Quarterly profits were down from $102 million in the third quarter of 2019.
“Our third-quarter results reflect considerably better-than-expected performance due to higher demand and our strong execution, especially in North America,” Frisk said.
MyFitnessPal and Endomondo were seen as targeting more casual fitness users. Apple has recently expanded its Apple Watch hardware and Apple Health software offerings, which target entry-level fitness users. It is also launching its Apple Fitness+ service, aimed at the same category, later this year.
The sale of MyFitnessPal is expected to close in the fourth quarter of 2020.