Investing.com -- Shares of Nu Skin Enterprises Inc. jumped over 17% in pre-market trade on Friday after the company announced a transaction through its unit, Rhyz Inc., involving the sale of its Mavely affiliate marketing technology platform to Later, a portfolio company of Summit Partners.
In exchange, Nu Skin received about $250 million, consisting of cash and a minority equity stake in the newly formed Later/Mavely business. About $33 million of the total is allocated for other equity holders in the Mavely venture.
This move is part of Nu Skin’s strategy to improve its position in the beauty, wellness, and lifestyle sectors. The integration of Later and Mavely is expected to strengthen the company’s affiliate marketing capabilities, with Mavely continuing to support Nu Skin’s operations.
Ryan Napierski, president and CEO of Nu Skin, stated that the transaction will help drive innovation within the company.
The deal resulted in a five-times return on Nu Skin’s investment in Mavely since its acquisition in 2021.
The proceeds will be used for debt reduction, investment in core operations, and stock repurchase. This will help improve Nu Skin’s financial position and provide value to shareholders.
Nu Skin worked with Evercore Group LLC as its financial advisor and Simpson Thacher&Bartlett LLP for legal counsel during the transaction.
The deal supports Nu Skin’s focus on its core business while allowing its units to grow through partnerships.
The integration of Later and Mavely is expected to enhance the company’s capabilities and its commitment to growth and value creation.
