Under Armour Sells MyFitnessPal for $345 Million

Leading athletic apparel company Under Armour revealed this morning that it has agreed to sell MyFitnessPal to the investment company Francisco Partners for $345 million. This move comes five and a half years after Under Armour initially purchased MyFitnessPal for $475 million. Simultaneously, the company announced the planned discontinuation of the Endomondo platform, which was acquired alongside MyFitnessPal for $85 million.

According to a statement released by Under Armour, this decision is intended to streamline operations and concentrate on its core brand identity, specifically targeting its “Focused Performer” customer. This strategic shift aims to foster “a unified and consistent UA experience.” However, the sale of MyFitnessPal at a reduced price – even when accounting for five years of inflation and reported user expansion – suggests additional factors are at play beyond simply refining brand focus.

It is accurate to state that both MyFitnessPal, which boasted 80 million users at the time of its 2015 acquisition and now reports over 200 million users, and Endomondo catered to individuals new to fitness or those focused on general wellness. These platforms served users who were less likely to be training for competitive endurance events. Under Armour, conversely, has cultivated a brand image more closely linked to professional athletes and dedicated, or aspiring, serious athletes.

A more probable explanation is that Under Armour anticipates a decline in the long-term value of this particular market segment, and several factors could contribute to this outlook. One key element is Apple’s increased efforts to attract entry-level fitness enthusiasts through its Apple Watch devices, the Apple Health application, and the upcoming Apple Fitness+ service, scheduled for release later this year.

Despite the potential for growth in the self-guided fitness sector due to the current pandemic and limitations on shared fitness facilities like gyms, Apple’s assertive strategy offers a comprehensive solution that is either free or available at a minimal cost with the purchase of their hardware. Furthermore, the expansion of Peloton, both through its specialized home fitness equipment and subscription service, is likely capturing a significant portion of the beginner and casual fitness market.

Under Armour confirmed that it will retain ownership and continue operating the MapMyFitness platform, encompassing MapMyRun and MapMyRide. This company was originally acquired in 2013, and its applications integrate with Under Armour’s line of connected footwear to provide enhanced workout tracking capabilities.