Nokia said that it is buying French fitness gadget maker Withings for EUR 170 million or $191 million to bolster its position in the Internet of Things domain. The acquisition is expected to close in early third quarter of the ongoing financial year, subject to regulatory approvals and customary closing condition, the company said, adding that Withings will be part of Nokia Technologies business.
"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," said Rajeev Suri, president & CEO of Nokia.
"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,” Suri added.
The Finnish telecom gear maker said that the combination of products from Withings and the Digital Health business will also ensure the ongoing renewal of Nokia Technologies' IPR portfolio.
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.
"Withings shares our vision for the future of digital health and their products are smart, well designed and already helping people live healthier lives," said Ramzi Haidamus, president of Nokia Technologies.
"We're excited to join Nokia to help bring our vision of connected health to more people around the world,” said Cédric Hutchings, CEO of Withings, said in the joint statement.
Withings was founded by Chairman Eric Carreel and CEO Cedric Hutchings in 2008 and is headquartered in France, with approximately 200 employees across its locations in Paris, France, Cambridge, US and Hong Kong.
Withings' portfolio of regulated and unregulated products includes activity trackers, weighing scales, thermometers, blood pressure monitors, home and baby monitors and more, and is built on a sophisticated digital health platform, providing insights to empower people to make smarter decisions about the health and wellbeing of themselves and their families. Withings' own products are complemented by an ecosystem of more than a hundred compatible apps