Nokia has announced plans to acquire Withings S.A., a leader in the connected health revolution for €170 million.
The Finnish tech company marks says the acquisition marks an entry point into the digital health sector
Under the acquisition plans, Withings is expected to be part of Nokia Technologies business says Rajeev Suri, president & CEO of Nokia who says the company sees digital health as an area of strategic interest to Nokia “and we are now taking concrete action to tap the opportunity in this large and important market.”
According to him, “with this acquisition, Nokia is strengthening its position in the Internet of Things in a way that leverages the power of our trusted brand, fits with our company purpose of expanding the human possibilities of the connected world, and puts us at the heart of a very large addressable market where we can make a meaningful difference in peoples’ lives.”
Nokia quoted the World Health Organisation figures, showing that cardiovascular disease as today’s number one cause of death, with more than a billion adults around the world living with uncontrolled hypertension.
Diabetes now affects more than one in twelve adults worldwide, a four-fold increase since 1980. Healthcare is expected to be one of the largest vertical markets in the Internet of Things, with analysts forecasting that mobile health, with a CAGR of 37%, will be the fastest growing health care segment from 2015-2020.
Also commenting on the deal is Ramzi Haidamus, president of Nokia Technologies” Withings shares our vision for the future of digital health and their products are smart, well designed and already helping people live healthier lives.
“Combining their award-winning products and talented people with the world-class expertise and innovation of Nokia Technologies uniquely positions us to lead the next wave of innovation in digital health.”
According to him the combination of products from Withings and the digital health business will also ensure the ongoing renewal of Nokia Technologies’ world class IPR portfolio. Withings’ own products are complemented by an ecosystem of more than a hundred compatible apps, according to Nokia.
“Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and wellbeing,” said Cédric Hutchings, CEO of Withings. “We’re excited to join Nokia to help bring our vision of connected health to more people around the world.”
”The planned transaction values Withings at 170 million Euros and would be settled in cash and is expected to close in early third quarter of 2016 subject to regulatory approvals and customary closing conditions”.