LifeMD Sells WorkSimpli Stake for $65 Million, Focuses on Virtual Care

LifeMD, Inc., a provider of virtual healthcare services, has announced the sale of its majority ownership interest in WorkSimpli Software LLC. This transaction, which values WorkSimpli at an enterprise value of approximately $65 million, marks a significant step in LifeMD’s strategic shift toward becoming a dedicated virtual healthcare company.

The divestiture was led by WorkSimpli founder and CEO Sean Fitzpatrick, with backing from a private investment group. LifeMD’s decision to sell its stake in the Software as a Service (SaaS) productivity tools firm is aimed at enhancing its focus on virtual care and pharmacy services.

Strategic Shift Toward Virtual Healthcare

By selling its majority stake in WorkSimpli, LifeMD intends to direct its resources entirely toward its core mission of virtual care. Under the agreement, LifeMD received approximately $22 million in cash at closing, which constitutes 91.6% of the base purchase price. Additionally, the sellers could receive up to $28 million in cash, contingent upon WorkSimpli meeting specific growth and operational targets over the next three years.

LifeMD expects to leverage existing Net Operating Loss carryforwards (NOLs) to offset a substantial portion of the capital gains resulting from this 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,” stated Justin Schreiber, Chairman and CEO of LifeMD. He emphasized that this strategic move bolsters the company’s balance sheet and positions it for accelerated growth in its primary business lines.

Expanding Virtual Care Offerings

Following the divestiture, LifeMD aims to concentrate its efforts on expanding its virtual care and pharmacy offerings. The company’s focused strategy includes key therapeutic areas such as weight management, women’s health, behavioral health, urgent care, and primary care.

In particular, LifeMD will continue to develop its Rex MD product portfolio, which addresses asynchronous men’s healthcare, e-pharmacy solutions, and men’s hormonal health. Furthermore, the company plans to broaden its platform to include more complex, longitudinal cardiometabolic care offerings, with an anticipated launch in the first half of 2026.

This strategic realignment comes at a time when demand for virtual healthcare services is rising, allowing LifeMD to better serve its patients, providers, and shareholders as it aims to create a more robust healthcare ecosystem.