Underneath Armour plans to shed two well being apps because it faces a retail slowdown resulting from Covid-19.
5 years after buying health app MyFitnessPal for $475 million, Underneath Armour plans to promote the corporate for $345 million. Underneath Armour introduced on Friday that it might promote the platform to non-public fairness agency Francisco Companions.
MyFitnessPal, which has been round since 2005, has drummed up greater than 200 million customers. Its foremost characteristic is a database of meals for vitamin monitoring, but it surely additionally has a paid subscription model with vitamin plans and recipes.
Underneath Armour President and CEO Patrik Frisk mentioned the deliberate sale was a part of a shift by the corporate to simplify its model.
“This announcement reduces the complexity of our client’s model journey by empowering sharper alignment with our long-term digital technique as we work in direction of a singular, cohesive UA ecosystem,” he mentioned in a information launch. “Moreover, it affords us funding flexibility to drive larger return and worth to our shareholders over the long-run.”
Underneath Armour will even shut down Endomondo, a health monitoring app it acquired for $85 million similtaneously the MyFitnessPal acquisition. It is going to nonetheless hold MapMyFitness, a platform that lets runners and cyclists observe their exercises that can also be a part of Underneath Armour’s linked health section.
In its most recent quarterly filing, the corporate shared that it expects income to be down for the 12 months, as foot site visitors in shops stays gradual. It additionally expects an working lack of between $800 million and $860 million for 2020.
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