Shares of Nu Skin Enterprises, Inc. (NYSE: NUS) experienced a notable surge following the announcement of a strategic shift involving its subsidiary, Rhyz Inc. As of the last check during the pre-market session, NUS stock climbed 14.33%, trading at $7.50, reflecting investor optimism.
Strategic Collaboration with Later
Nu Skin disclosed that Rhyz Inc. had finalized a strategic agreement with Later, a Summit Partners portfolio company. Rhyz sold its affiliate marketing technology platform, Mavely, to Later for approximately $250 million. This consideration includes a cash payment and a minority equity stake in the newly combined Later/Mavely entity. Of the total, around $33 million will be allocated to other Mavely equity holders.
This partnership aligns with Nu Skin’s broader goals, as Mavely will continue to provide technological and social commerce support for the company’s affiliate marketing initiatives. The integration of Later and Mavely enhances NUS’ vision of expanding its beauty, wellness, and lifestyle ecosystem.
Enhanced Marketing Capabilities
The merger of Later and Mavely is set to revolutionize affiliate marketing strategies. Later’s AI-powered predictive analytics will now incorporate first-party data from Mavely’s network, which includes over 120,000 creators. These creators have collectively driven more than $1 billion in gross merchandise volume (GMV) for renowned brands such as Nike, Anthropologie, and Adidas.
This integration enables an end-to-end marketing solution, spanning awareness to conversion, strengthening Later’s position in the purchase funnel.
Financial Benefits and Shareholder Value
This transaction underscores Rhyz Inc.’s ability to scale high-value businesses with synergistic potential. Nu Skin has had a fivefold return on its investment since purchasing Mavely in 2021. The sale’s proceeds will be utilized to improve the company’s core business, finance innovation, and pay down debt.
In order to enhance value, Nu Skin also intends to repurchase shares under its current stock buyback program. This move reflects a commitment to financial stability and long-term growth. The strategic move marks a significant milestone for NUS, highlighting its innovative approach to business transformation and market expansion.
