Tivity Health, a Franklin, Tennessee-based consumer health company, announced it will be purchased by private equity firm Stone Point Capital for $2 billion.
The transaction with Greenwich, Connecticut-based Stone Point, which is expected to close in the third quarter, will end more than 30 years as a publicly held company under various names.
Stockholders of Tivity will receive $32.50 per share. Richard Ashworth will stay on as CEO and the company will also maintain its Tennessee headquarters.
Tivity, which was known as Healthways until 2017, has spent the last few years virtualizing its Silver Sneakers fitness and wellness program. Through partnerships with health insurance companies and fitness centers, Tivity offers Medicare enrollees both in-person and virtual classes and wellness programs.
The company took a financial hit when it bought Nutrisystem, a nutrition and weight management company, for $1.3 billion in December 2018, only to sell it for less than half of that less than two years later. The company also felt the sharp decline of in-person fitness center visits during the pandemic. Year-end revenue in 2021 was $481 million compared with $633 million in 2019.
Ashworth, a former Walgreens executive, came on board in June 2020 to help accelerate a shift towards digital. In 2021, the company had 3.4 million virtual fitness and wellness visits, twice as many as the year before. Half of the people who joined Silver Sneakers virtually were new to the program.