Why RooLife Group Is Selling Its Australian Digital Marketing Arm Now

Strategic Divestment to Refocus Business

RooLife Group Ltd (ASX, RLG) has announced a binding agreement to sell its wholly owned Australian digital marketing subsidiary, CHOOSE Digital Pty Ltd, for a total consideration of $356,500 plus a working capital adjustment. The sale is scheduled to complete by the end of July 2025 and represents a clear strategic shift for the company.

The divestment is part of RooLife’s broader plan to sharpen its business focus on high-margin product sales in key international markets, including China, India, Southeast Asia, and the United Kingdom. By exiting the Australian digital marketing operations, RooLife aims to concentrate resources on its core strengths, leveraging consumer data and e-commerce expertise to identify and source products in demand globally.

Financial and Operational Details

The agreed sale price includes an upfront payment of $200,000 upon execution of the term sheet and a deferred payment of $156,500 due by the end of December 2025. Additionally, a working capital adjustment estimated at approximately $145,110 will be confirmed post June 30, 2025, to reflect CHOOSE’s net asset position at that date.

Notably, Warren Barry, who has served as Head of Australian Sales and managed CHOOSE’s operations, has resigned from RooLife but will continue his involvement with CHOOSE as part of the purchaser group. This continuity may ease the transition and preserve operational stability for the subsidiary under new ownership.

A Data-Led Commerce Future

RooLife’s Managing Director, Bryan Carr, emphasised that the divestment aligns with the company’s vision of becoming a data-led commerce group. The company’s strategy focuses on identifying consumer demand through data analytics, sourcing high-margin products, and rapidly launching them internationally via its marketplace platforms.

This approach leverages RooLife’s growing partnerships in China and other key markets, aiming to expand revenue streams by selling products under its own brands and assisting Chinese partners in reaching global consumers. The sale of CHOOSE Digital is thus a tactical move to streamline operations and enhance focus on these high-growth opportunities.

Looking Ahead

While the financial impact of the sale will be clearer once the working capital adjustment is finalised, the transaction signals RooLife’s commitment to its global expansion strategy. Investors will be watching closely for updates on how this divestment influences the company’s profitability and market positioning in the coming quarters.