Nokia plans R2.7 billion acquisition of digital health firm Withings
Nokia has announced plans to acquire digital health firm and manufacturer of health wearables, Withings to the tune of €170 million (R2.7 billion).
Withings, was founded back in 2008 by Eric Carreel and Cedric Hutchings who currently hold the Chairman and Chief Executive Officer positions respectively. The firm distributes many regulated and unregulated products including activity trackers, scales, blood pressure monitors among other things.
The magician, Penn Jillette is actually a spokesperson for the brand and interestingly this video also showcases a number of products the brand flogs, just in case you were wondering what Withings is.
Since Microsoft acquired Nokia’s mobile business back in 2013 the consumer side of the Finnish firm has been rather quiet. Perhaps the acquisition of Withings will breath new life into Nokia’s consumer business.
In a press statement announcing the planned acquisition, Nokia Technologies President, Ramzi Haidamus 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.”
The CEO of Withings also took time to comment about the planned acquisition saying, “We’re excited to join Nokia to help bring our vision of connected health to more people around the world.”
Why is Nokia buying this firm up? Well, it just makes good business sense. According to P&S Market Research, the global digital health market will grow 21.4% between now and 2020. Considering the same market was valued at $55.3 million in 2014 is it any wonder the firm is forking out for Withings.
The acquisition is expected to be finalised before the end of the third quarter of this year subject to regulatory approvals.[Source – Nokia]