Under Armour acquired MyFitnessPal for $475 million in 2015 to expand its digital platform into online fitness communities to help increase sales.

Under Armour spent heavily on acquiring activity app users in 2017 even as revenue from these apps has slowed down, per a Gartner L2 report. While virtual workouts and health tracking apps can help users maintain an exercise routine while also practicing social distancing, an increasingly crowded space means app operators must put more resources behind acquiring and retaining app users, something Under Armour, whose sales are lackluster, may not have been prepared to do. In addition, exercise equipment company Peloton, which also offers virtual workouts, has emerged as a formidable competitor, reporting sales growth of 172% to $607.1 million in its last quarterly report.Įven as gyms are gradually reopening at reduced capacity following lockdowns that severely hampered revenue, fitness enthusiasts continue to seek ways to get exercise while limiting in-person contact. Meanwhile, sportswear giant Nike continues to see success with record usage for its Nike Training Club and Nike Run Club apps, helping to support its digital commerce growth. Under Armour's sale of MyFitnessPal and the pending shutdown of Endomondo mark its retreat from the fitness app category, which is about to get more competitive as Apple later this year launches its Fitness+ service that will be integrated with the Apple Watch. The firm has raised more than $24 billion and invested in more than 300 technology companies during its more than 20-year history, per the announcement.

Francisco Partners will operate MyFitnessPal, which has more than 200 million users worldwide, as a standalone company.

Under Armour plans to continue operating MapMyFitness, whose GPS tracking apps include MapMyRun and MapMyRide, and its connected footwear business.

MyFitnessPal and Endomondo are currently part of Under Armour's connected fitness segment, which also operates the MapMyFitness platform to track running and workouts.

The sportswear brand also plans to stop operating its Endomondo social fitness network operations at the end of this year.

Under Armour agreed to sell the MyFitnessPal platform to venture capital firm Francisco Partners for $345 million in a deal expected to close during the current quarter, per an announcement.

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