Nu Skin Enterprises, Inc. (NYSE:NUS) saw its shares rise on Friday following the announcement of a strategic transaction by its Rhyz Inc. subsidiary.

Rhyz has sold its Mavely affiliate marketing technology platform to Later, a portfolio company of Summit Partners, for approximately $250 million in cash and a minority equity stake in the combined Later/Mavely business.

The deal, which also includes $33 million to be paid to other equity holders in the Mavely business, is part of Nu Skin's broader strategy to enhance its affiliate marketing efforts. Despite the sale, Mavely will continue to provide technology and social commerce capabilities to support Nu Skin's affiliate marketing business.

Also Read: Dollar Hits New 2-Year High; Asia Markets Mixed, Europe Dips – Global Markets Today While Us Slept

Ryan Napierski, Nu Skin's president and CEO, expressed confidence in the transaction, highlighting how the combination of Later and Mavely will help accelerate the company's vision for its beauty, wellness, and lifestyle ecosystem. Napierski also noted that the deal strengthens Nu Skin's balance sheet, generating additional capital to increase innovation in its core business and investments in Rhyz companies.

This strategic move has resulted in an approximate five-times return on Nu Skin's cumulative investment in Mavely since its acquisition in 2021. The proceeds from the transaction are expected to be used for debt reduction, further innovation, and stock buybacks under Nu Skin's repurchase program, aiming to provide value to its shareholders.

Price Action: NUS shares are trading higher by 16.5% to $7.64 premarket at last check Friday.

• Joe Biden To Decide On Nippon Steel's $14.9B US Steel Acquisition On Friday Amid Veto Offer, Labor Concerns

Photo via Shutterstock.