LifeMD sells majority stake in WorkSimpli for $65 million valuation

LifeMD Inc. (NASDAQ: LFMD) sold its majority ownership interest in WorkSimpli Software LLC in a transaction that valued the software company at approximately $65 million. The transaction closed November 4, 2025.

The buyer group was led by WorkSimpli founder and CEO Sean Fitzpatrick, with support from a private investment group. LifeMD received approximately $22 million in cash at closing, representing 91.6% of the $24 million base purchase price for the 80% interest sold.

The sellers may receive up to an additional $28 million in cash if WorkSimpli achieves defined growth and operational targets over the next three years. A portion of the closing proceeds were held back for adjustments related to net working capital, cash, closing date indebtedness, and transaction expenses.

LifeMD initially invested $250,000 in WorkSimpli in June 2018 for a 51% equity interest. The company invested approximately $1.25 million total and held 73.3% ownership immediately before the sale. LifeMD expects to use existing Net Operating Loss carryforwards to offset most capital gains from the transaction.

WorkSimpli develops and operates software-as-a-service productivity tools and contributed positive cash flow to LifeMD during their partnership.

"This transaction represents a defining moment for LifeMD and for WorkSimpli," said Justin Schreiber, chairman and CEO of LifeMD. "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."

Following the divestiture, LifeMD plans to focus on expanding its virtual care and pharmacy offerings, including weight management, women's health, behavioral health, urgent care, and primary care. The company also plans to expand into cardiometabolic care offerings beginning in the first half of 2026.

BTIG LLC served as exclusive financial advisor and Baker McKenzie served as legal advisor to LifeMD for the transaction.

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