SWEDEN —Swedish digital health developer Sleep Cycle has agreed to acquire lifestyle music publisher Audiowell for SEK 2.26 billion through a non-cash issue of 92,042,212 new shares. The transaction values Audiowell at SEK 24.50 per share, reflecting a 22.62 percent premium over Sleep Cycle's closing price on October 8, 2026. Because the issue will grant parent entity Audiowell Group AB an 82 percent controlling stake in Sleep Cycle, the deal constitutes a reverse takeover. Founded in 2009 and based in Gothenburg, Sweden, Sleep Cycle develops algorithmic sleep-tracking software leveraging acoustic analysis across mobile platforms.
This corporate combination creates a broader digital health and media entity targeting consumer wellness. By integrating Audiowell’s sound assets with Sleep Cycle’s tracking technology, the merged company aims to address consumer demand for integrated sleep aid and relaxation solutions. Financially, the deal significantly alters Sleep Cycle’s scale; combined full-year 2025 revenue reaches SEK 625.4 million, up from Sleep Cycle’s standalone net sales of SEK 247.9 million, while aggregate operating profit rises to SEK 282.3 million.
The agreement impacts private equity dynamics and corporate governance within the European digital health sector. Private equity firm Altor, which acquired a 79.5 percent stake in Sleep Cycle in July 2026 through Snark BidCo and holds an indirect minority stake in Audiowell, will see Audiowell Group replace Snark BidCo as the direct majority owner. Existing Sleep Cycle shareholders face an 82 percent dilution, retaining an 18 percent stake. Following completion, Audiowell Group will be legally required to launch a public takeover offer for the remaining shares at SEK 24.50 per share within four weeks, though options to maintain Sleep Cycle's public listing are being evaluated.
Operationally, Audiowell Chief Executive Officer Gustav Forssell is set to take over as Chief Executive Officer of the combined entity, while acting Chief Executive Officer Mikael Kågebäck returns to his primary role as Chief Technology Officer. The entity expects to maintain both operating brands while integrating shared digital capabilities across a headcount of 41 employees. Transaction closing remains subject to approval at an extraordinary general meeting scheduled for November 11, 2026, alongside regulatory clearances for foreign direct investments, with completion anticipated during the fourth quarter of 2026.
