Under Armour, a global leader in branded athletic performance apparel, footwear and accessories, announced that it has entered into a definitive agreement to sell the MyFitnessPal platform to Francisco Partners for $345 million.
Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. The firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential.
“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,” said Under Armour President and CEO Patrik Frisk. “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.”
“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,” said Christine Wang, Principal at Francisco Partners.
“The transaction value is $345 million, inclusive of the achievement of potential earn-out payments and subject to working capital and other customary adjustments. The transaction, which is expected to close in the fourth quarter of 2020, is subject to customary closing conditions and regulatory approvals,” Under Armour said in its press release.
PJ SOLOMON has served as exclusive financial advisor to Under Armour on the transaction. King & Spalding LLP is acting as legal advisor. Paul Hastings LLP and Kirkland & Ellis LLP are acting as legal advisors to Francisco Partners.
–AN
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.