Germany’s Adidas has agreed to sell Boston-based Reebok to Authentic Brands Group (ABG) for up to €2.1 billion, with the majority paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration.

Adidas bought Reebok for $3.8 billion in 2006 to help compete with Nike — but its disappointing performance prompted calls from shareholders to sell the brand.

Adidas said it intends to give the majority of the cash proceeds to shareholders.

Adidas CEO Kasper Rorsted said: “Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it have made to our company.

“With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success.

“As for Adidas, we will continue to focus our efforts on executing our ‘Own the Game’ strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders.”

Authentic Brands founder and CEO Jamie Salter said: “This is an important milestone for ABG, and we are committed to preserving Reebok’s integrity, innovation, and values – including its presence in bricks and mortar.

“We look forward to working closely with the Reebok team to build on the brand’s success.”

Last month, ABG filed for a US initial public offering after a year of strong earnings growth.

ABG has amassed more than 30 labels sold in some 6,000 stores over the past 11 years.

Its brands include Aéropostale and Forever21, as well as and Sports Illustrated magazine.