After making a solid come back with the Alcatel-Lucent deal, Nokia is now planning to enter digital healthcare and IoT segment and is set to acquire a French company called Withings, for $192 million (€170 million to be exact) towards the same goal.
Withings is a maker of digitally connected modern healthcare gadgets such as fitness trackers, smart scales, watches, sleep scales, etc. The company recently raised around $34 million and claims to have about 200 employees working in Paris, Cambridge (U.S.), and Hong Kong.
President & CEO Rajeev Suri said,
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.
He also said that digital healthcare had always been an area of strategic importance to Nokia and with this acquisition, they were taking concrete steps to tap the opportunity in this market.
Post acquisition, Withings will become a part of Nokia Technologies, which is the company’s arm focussed on developing advanced consumer focused gadgets based on modern tech such as VR. One such example is the VR-based Ozo filmmaking platform which enables filmmakers to use VR for mainstream film production.
Nokia has gone through a major restructuring process in past few years. First with its selling of phone business to Microsoft (how it turned out for Microsoft, that’s a whole different story, though!) and then efforts for establishing itself as a network infrastructure business aided by its $16 billion acquisition of Alcatel-Lucent, Nokia has come a long way.
According to the company, healthcare is expected to be one of the largest vertical markets in the Internet of Things growing with a CAGR of 37% from 2015-2020. This tremendous potential and innovative products from Withings will help the Finnish giant in expanding the portfolio of its products coming from Nokia Technologies.
Ramzi Haidamus, president of Nokia Technologies said,
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.
Withings on the other hand, has assured that their existing applications and products will continue to work in the same way, despite their acquisition by Nokia.
In a statement, Cédric Hutchings, Withings CEO, said,
We’ve been impressed with the plans the Nokia team has shared with us both for preventive health and patient care. We’re excited to join Nokia to help bring our vision of connected health to more people around the world.
The all-cash deal is expected to close in early Q3, 2016 subject to regulatory approvals and customary closing conditions.