Clipperton advised Berlin-based 8fit, a leading digital health & fitness platform, on its sale to Withings

Another addition to Clipperton’s strong track record in digital health and consumer subscription: Clipperton acted as sole sell-side financial advisor to 8fit, its management and shareholders (a.o. Eight Roads and Creandum) on its sale to Withings, a global leader in connected health devices.

Executive Summary

• 8fit is the provider of a globally leading digital fitness, mindfulness and nutrition platform.  With a global reach of over 30 million users and market-leading app store ratings, 8fit is one of the leading platforms for “fitness for all of us”
• In a targeted and competitive process, Clipperton assisted 8fit and its shareholders in finding a new strategic partner for the company to continue its successful development path
• This is a continuation of Clipperton’s strong track record in the digital health and consumer subscription space, including recently e.g. advising Merieux’ on the $150m financing round of Dental Monitoring at a $1bn valuation; advising Inova on its $70m investment by Carlyle; or advising a leading mindfulness platform on its sizeable financing round by several family offices

Our Client 

• 8fit has firmly established itself as one of the leaders in healthy lifestyle consumer subscription, offering a balanced programme of fitness, mindfulness and nutrition to more than 30 million users worldwide
• The company has been founded in 2014 and is headquartered in Berlin, Germany, with its users spanning all continents including a strong footprint in North America, Latin America and Western Europe
• The company has raised $20m with tier-one investors such as Eight Roads Ventures and Creandum

Our View on the Digital Health and Consumer Subscription Sectors

• The digital wellness space is a large and fast-growing space with annual growth rates of 30%+ for digital fitness and 20%+ for personalised nutrition over the next five years, reaching an estimated total addressable market size in 2027 of $76bn for online fitness and personalised nutrition as well as $66bn for global corporate fitness platforms
• Market growth in this area has been driven by secular shifts in consumer expectations and behaviour, such as the ascent of virtual fitness, personalization in every aspect of life, sustainable living and the expectation of employers’ offering wellbeing platforms to their staff
• While the market is undergoing secular growth, we have at the same time seen significant consolidation taking place, with more specialised players joining larger platforms, financial investors doubling down on the sector, and device and software platforms converging

8fit x Withings: Deal Rationale

• Withings is one of the global leaders in connected health devices, founded in 2008 and backed by its founder Eric Carreel as well as pre-eminent financial investors such as Gilde Healthcare
• The company has been undergoing huge growth in connected devices, helping millions of people to track their health data; recently, the company has been expanding into further medical fields and can now track more than 20 health parameters for its clients
• The acquisition of 8fit will allow Withings to further expand its global user footprint, develop cross-sell synergies, substantially enrich its digital platform with a huge library of valuable content, and further increase subscription revenue and user engagement

Process Highlights & Clipperton’s Role

• Clipperton was appointed as sole sell-side financial advisor by 8fit’s management and current shareholders (a.o. Eight Roads and Creandum)
• Clipperton’s mission consisted in conducting a targeted outreach to drive a compact, competitive process giving maximum optionality to 8fit and its shareholders regarding deal terms and future development of the company
• Significant interest and competitive tension allowed 8fit’s shareholders to obtain offers from multiple parties
• This transaction confirms Clipperton’s unique expertise in the digital health and consumer subscription space after successfully advising Merieux’ on the $150m financing round of Dental Monitoring at a $1bn valuation; advising Inova on its $70m investment by Carlyle; or advising a leading mindfulness platform on its sizeable financing round by several family offices
• 8fit’s CEO Mark Ralea stated: “We are thrilled to join Withings. They share our vision of holistic digital wellness for everybody.” He further added: “We selected Clipperton as an investment bank for its expertise, track-record, and broad global access to strategic counterparts. We were amazed by the solid advisory work of Clipperton during this process, and we are delighted with the outcome.”
• Dr. Nikolas Westphal, Partner at Clipperton and Head of Germany, stated: “It was an absolute pleasure to support Mark and his team in the next phase of the company’s growth. We believe that with Withings, 8fit has found the best possible strategic partner to continue its development and are looking forward to seeing the combined platform soon.”

Deal Team 

• Dr. Nikolas Westphal, Partner, nwestphal@clipperton.com
• Ingmar Wegel, Director, iwegel@clipperton.com
• Christopher Kertess, Associate, ckertess@clipperton.com
• Julia Wölfel, Analyst, jwoelfel@clipperton.com

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About Clipperton

Clipperton is a leading investment bank dedicated to technology and growth companies. We provide strategic and financial advisory to entrepreneurs, corporates, and top-tier investors in Europe willing to execute transactions such as strategic M&A, private equity transactions, and private placements. Founded in 2003 and with offices in Paris, Berlin, Munich, London, New York, and Beijing, Clipperton has completed over 350 M&A and private placement transactions with fast-growing technology start-ups, blue-chip corporates, and renowned financial investors.