Additionally, it affords us investment flexibility to drive greater return and value to our shareholders over the long-run." "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.
"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. The platform has grown from 80 million users in 2015 to more than 200 million today, according to a statement from Francisco Partners Principal Christine Wang.īut while Wang said the investment firm is excited to continue MyFitnessPal's "strong history of recurring revenue growth, organic user acquisition and a unique consumer proposition," Under Armour said that it was leaving the platform behind in an effort to reinforce a singular ecosystem strategy (and pick up a bit of extra capital in the process). In those arenas, MyFitnessPal likely had some measure of success. When the company first announced that it would be acquiring MyFitnessPal and Endomondo five years ago, it was fairly clear about its goals – building a social community of users that could be exposed to Under Armour's brand, and encouraging regular physical activity that would increase demand for athletic apparel and footwear.
Under Armour may be selling MyFitnessPal at $130 million deficit, but that isn't to say that the acquisition was a total loss. The athletic apparel company said it would be discontinuing Endomondo by the year's end, but that "the MapMyFitness platform, which includes MapMyRun and MapMyRide, remains a crucial element of Under Armour's digital strategy" and will be maintained. The selloff comes roughly three years after MyFitnessPal's founders, Mike and Albert Lee, departed from their positions at Under Armour as chief digital officer and SVP of digital product, respectively.Ĭoinciding with the announcement is word on Endomondo and MapMyFitness, the two other connected fitness platforms Under Armour shelled out for within the last decade. The deal is set to officially close in the fourth quarter, and its value is inclusive of potential earn-out payments.
Under Armour announced late last week that it is selling off MyFitnessPal to investment firm Francisco Partners for $345 million – a fair bit lower than the $475 million it paid for the connected fitness app and platform back in 2015.
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