Nokia buys Withings to enter connected health market
May 4, 2016
Finnish telecoms giant Nokia is to acquire French connected health company Withings for €170m. The company has a family of award-winning digital health products and services and will become part of the 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 and 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."
World Health Organization figures show 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.
According to Nokia, digital healthcare is expected to be one of the largest vertical markets in the IoT, with analysts forecasting that mobile health, with a CAGR of 37 per cent, will be the fastest growing health care segment from 2015 to 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. "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."
The combination of products from Withings and the digital health business could also ensure the on-going renewal of Nokia Technologies' IP portfolio.
Withings was founded by chairman Eric Carreel and CEO Cédric Hutchings in 2008 and is headquartered in France, with approximately 200 employees across its locations in Paris, USA 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 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.
"Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and wellbeing," said Hutchings. "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 €170m and would be settled in cash and is expected to close early in the third quarter of 2016 subject to regulatory approvals and customary closing conditions.