Nokia hopes to strengthen its presence in the Internet of Things (IoT) market with a plan to acquire French fitness gadget maker Withings S.A for EUR 170 million. The deal would be settled in cash and is expected to close by early Q3, 2016, subject to regulatory approvals and customary closing conditions.
Commenting on the new acquisition, Rajeev Suri, President & CEO of Nokia 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.”
Healthcare is expected to be one of the largest vertical markets in the Internet of Things. Analysts forecast mobile healthcare to grow 37% from 2015-2020.
The combination of innovative products from Withings and the Digital Health business will also ensure the ongoing renewal of Nokia Technologies’ world-class IPR portfolio.
Founded in 2008, Withings has approximately 200 employees across its locations in Paris, France, Cambridge, US and Hong Kong. Withings has a wide range of healthcare products including activity trackers, weighing scales, thermometers, blood pressure monitors, home and baby monitors, etc.
“Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and wellbeing,” said Cédric Hutchings, CEO of Withings. “We’re excited to join Nokia to help bring our vision of connected health to more people around the world.”