What You Should Know:
– LifeMD, Inc., a provider of virtual healthcare services and pharmacy, today announced the sale of its majority ownership interest in WorkSimpli Software LLC in a transaction valuing WorkSimpli at an enterprise value of approximately $65M.
– The divestiture was led by WorkSimpli founder and CEO Sean Fitzpatrick, with support from a private investment group. This transaction represents a key milestone in LifeMD’s strategic transformation, positioning the Company as a pure-play healthcare company focused exclusively on expanding its virtual care and pharmacy offerings.
Strategic Divestiture to Sharpen Focus
The sale of its majority stake in the Software as a Service (SaaS) productivity tools company, WorkSimpli, allows LifeMD to concentrate resources entirely on its core mission in virtual care. Under the terms of the agreement, LifeMD received approximately $22M in cash at closing (representing 91.6% of the base purchase price). Additionally, the sellers are eligible to receive up to an additional $28.0M in cash contingent upon WorkSimpli achieving defined growth and operational targets over the next three years. LifeMD expects to utilize existing Net Operating Loss carryforwards (NOLs) to offset the majority of the capital gains generated from the sale.
“By divesting our majority stake in WorkSimpli, we are sharpening our focus on what we do best: building and scaling one of the most comprehensive virtual care technology platforms in the industry,” said Justin Schreiber, Chairman and CEO of LifeMD. “This strategic move strengthens our balance sheet and positions LifeMD to accelerate growth across our core business lines, expand into new clinical verticals, and deliver even greater value to our patients, providers, and shareholders.”.
Accelerating Growth in Virtual Care and Pharmacy
Following the divestiture, LifeMD will concentrate its resources on expanding its virtual care and pharmacy offerings.
The company’s focused strategy includes continued attention to key therapeutic areas:
- Core Verticals: Weight management, women’s health, behavioral health, urgent care, and primary care.
- Men’s Health: LifeMD will continue to scale its Rex MD product portfolio, which focuses on asynchronous men’s healthcare, e-pharmacy solutions, and men’s hormonal health.
- New Initiatives: The Company plans to broaden its platform into more complex, longitudinal cardiometabolic care offerings beginning in the first half of 2026.
