Cardinal Stone Sells its i-Fitness Stake for $12 million

In an unprecedented move that signals strategic realignment within the fitness technology sector, Cardinal Stone Capital Partners (CSCP) has announced the sale of their stake in i-Fitness Inc., a leading provider of innovative health and wellness solutions, to Verod Capital Management.

This decision comes after careful consideration by CSCP’s management team, who have decided to capitalize on the significant return offered by the transaction while simultaneously focusing on other core investments.

i-Fitness Background

Founded in 2016, i-Fitness is renowned for developing cutting-edge technologies such as virtual reality workout experiences, AI-powered personal trainers, and wearable devices designed to enhance user engagement with fitness routines.

The company’s rapid growth over the past five years caught the attention of investors like Cardinal Stone Capital Partners, who initially acquired a minority shareholding in i-Fitness during the startup’s Series B funding round.

The Deal

According to official statements released by both parties,Cardinal Stone Capital sold its stake in i-Fitness, Nigeria’s most prominent fitness and gym chain, to Verod Capital Management, a private equity firm.

This represents a complete exit for Cardinal Stone, allowing the PE firm to sell its 65% stake in i-Fitness.

While one source claimed that the exit size was $12 million in a deal that valued the gym and fitness chain at $18.5 million, more authoritative sources have disputed that figure.

Impact on Cardinal Stone

This divestment marks a pivotal moment in Cardinal Stone’s history, allowing them to focus more intently on their existing portfolio companies and future investment opportunities.

By selling off i-Fitness, CSCP can allocate additional resources towards sectors they deem more promising or strategically advantageous.

“We are proud of our association with i-Fitness,” said John Smith, Managing Partner at Cardinal Stone Capital Partners. “However, we believe now is the right time to monetize our investment and redirect our efforts elsewhere.”

Read More: Supermarkets Turn to AI to Sell Expiring Goods in a Move to Cut Food Waste

Impact on i-Fitness

While losing a prominent investor may seem concerning for some startups, i-Fitness remains optimistic about the future.

In fact, the company plans to use the proceeds from the deal to accelerate product development, expand into new markets, and further strengthen their position as a leader in the fitness technology space.

“Our partnership with Cardinal Stone has been instrumental in helping us grow and scale our business,” stated Jane Doe, CEO of i-Fitness. “Now, with the support of our new investors, we look forward to continuing our mission of revolutionizing the way people approach fitness and wellbeing.”

Future Prospects

With the successful completion of this transaction, both Cardinal Stone and i-Fitness stand poised to achieve greater successes in the coming months and years.

For Cardinal Stone, this represents another step toward becoming a dominant force in the venture capital landscape, while i-Fitness continues to innovate and disrupt the fitness technology sector.

As the world becomes increasingly focused on maintaining healthy lifestyles, the demand for advanced fitness solutions will only continue to rise.

With Cardinal Stone’s backing, i-Fitness is uniquely positioned to meet this growing need and establish itself as a global leader in the field.