(Reuters) — The private equity owner of MyFitnessPal is exploring a sale of the mobile application that tracks nutrition and fitness, which could value it at over $1 billion, according to four sources familiar with the matter.
Francisco Partners, which bought MyFitnessPal from Under Armour in 2020, is working with JPMorgan on the sale process, the sources said, requesting anonymity because the matter is private.
Demand for digital health and fitness tools has grown in recent years, boosting the adoption of apps such as MyFitnessPal, Apple Health, and Peloton App One, and wearable devices such as Oura rings. Reuters reported last year that fitness tracking platform Strava was exploring an initial public offering.
Francisco Partners and JPMorgan declined to comment. MyFitnessPal did not immediately respond to a comment request.
MyFitnessPal, founded in 2005, was sold to Under Armour in 2015 for $475 million. Francisco Partners acquired it for $345 million, including potential additional payments tied to performance targets, in 2020.
The Austin, Texas-based app generates close to $150 million of annual earnings before interest, taxes, depreciation, and amortization, three of the sources said.
MyFitnessPal users can track calories, vitamins, weight and exercise, and get meal plans, recipes, and on-demand video workouts. The app is free but there is a premium option that costs $24.99 per month, or an upfront $99.99 annual payment.
Last year, the company said it had over 280 million members in over 120 countries.
Francisco Partners, headquartered in San Francisco, is a technology-focused investment firm with over $50 billion in capital raised to date.
(Reporting by Abigail Summerville and Milana Vinn in New York, editing by Echo Wang and Rod Nickel)
