Nokia has officially entered the digital health market, big time. The Finnish company has acquired Withings, which we know for their suite of connected devices such as watches, scales, cuffs and more. The deal, worth 170 million EUR, will also ensure the ongoing renewal of Nokia Technologies' world class IPR portfolio.
"We have said consistently that digital health was an area of strategic interest to Nokia, and we are now taking concrete action to tap the opportunity in this large and important market," Rajeev Suri, president and CEO of Nokia, said in a statement. "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."
The deal will also ensure the ongoing renewal of Nokia Technologies' world class IPR portfolio.Founded by Chairman Eric Carreel and CEO Cedric Hutchings in 2009, Withings is headquartered in France, and has around 200 employees in Paris, Cambridge, US and Hong Kong. The company's portfolio includes activity trackers, weighing scales, thermometers, blood pressure monitors, home and baby monitors, and more. Withings also runs a cloud service and offers a mobile app that connects with all of its devices while enabling users to get all of their readings from a single place. In addition, Withings' products are complemented by an ecosystem of more than a hundred compatible apps.
"Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and wellbeing," Cédric Hutchings, CEO of Withings, said in a statement. "We're excited to join Nokia to help bring our vision of connected health to more people around the world."
The planned transaction would be settled in cash and is expected to close in early Q3 2016 subject to regulatory approvals and customary closing conditions.
According to CrunchBase, Withings has raised $33.83 million to date.