Nu Skin Enterprises announced that its Rhyz subsidiary completed a strategic transaction with Later, a portfolio company of Summit Partners. And as part of the deal, Rhyz sold its Mavely affiliate marketing technology platform to Later in exchange for about $250 million in cash and a minority equity stake in the combined Later/Mavely business.
About $33 million of such consideration will be paid to other equity holders in the Mavely business. And in connection with the deal, Mavely is expected to continue to provide technology and social commerce capabilities to support Nu Skin’s affiliate marketing business.
This deal generated an approximate five-times return on the company’s cumulative investment in Mavely since it was acquired in 2021. The proceeds from the deal are expected to be used to pay down debt and fund additional innovation. The company also plans to use its strengthened balance sheet to buy back stock under its existing stock repurchase program, providing value to its shareholders.
Evercore Group was the exclusive financial advisor, and Simpson Thacher & Bartlett LLP was the legal counsel to Nu Skin Enterprises.
KEY QUOTE:
“Together, we believe Later and Mavely will provide enhanced capabilities to our company as we pursue our broader beauty, wellness and lifestyle ecosystem vision, while the transaction generates additional capital and resources for us to increase innovation in our core Nu Skin business and investment in our Rhyz companies. This underscores the value of Rhyz to incubate and scale meaningful businesses with synergistic value across the enterprise.”
- Ryan Napierski, Nu Skin president and CEO
