Nightingale accelerates development of its health platform by acquiring a digital health mobile app

Translation: Original comment published in Finnish on 07/09/2021 at 12:15

Nightingale announced it acquires all shares of Yolife GmbH, a German company specializing in digital health solutions. Yolife has created a mobile app helping everyone to live longer in good health through science-based lifestyle changes. The Yolife digital health solution learns from the user’s behavior and provides them with a holistic wellbeing strategy based on motivating challenges that help the user achieve their health goals. According to the release, the solution developed by Yolife will be integrated into Nightingale’s preventative health offering and the founding team of Yolife will work for Nightingale to promote the global health mission.

The parties have agreed that the total purchase price of Yolife’s shares is some EUR 740,000, of which around 30% will be paid in cash consideration, while 70% will be covered by a directed share issue of Nightingale’s Series B shares with a subscription price of EUR 6.75 per share. The subscription price is the same as in Nightingale's IPO in March but when the release was published the share price on the stock exchange was EUR 5.83 per share. The majority use of shares in the deal payout and their subscription price indicate that Yolife’s owners wanted to become part of Nightingale’s story instead of merely exiting, which is a good basis for future cooperation.

Yolife has no considerable income flow and the deal price (EUR 0.74 million) is low compared to Nightingale’s market cap (around EUR 350 million), so it does not cause significant estimate changes. We believe the deal is a precision acquisition for product development, where Nightingale receives ready-made components and expertise in developing the digital offering visible to customers. The company has previously lacked the functionality for motivating lifestyle changes and with the acquisition this functionality leaps forward. Nightingale's short-term aim is to launch a new version of the company’s mobile app and we believe functionalities of Yolife’s app will already be included in this launch. Nightingale has recently announced several positive steps forward and you can read more about the from our previous analyst comments.