Today that may be about to change, for Nokia has just announced plans to acquire the French company, Withings S.A., a specialist in digital health products and services, for EUR 170 million (roughly $191 million USD). Rajeev Suri, president and CEO of Nokia, had the following comments to offer:
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…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 company’s press release specifically calls out two major forms of global health epidemics: cardiovascular disease, stating that it is the world’s leading cause of death with over one billion adults living with uncontrolled hypertension (high blood pressure), and diabetes, which affects more than one in every twelve adults around the world. Nokia believes that heathcare is going 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.”
As a result, Ramzi Haidamus, president of Nokia Technologies, feels that
Withings shares our vision for the future of digital health and their products are smart, well designed and already helping people live healthier lives. 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.
In addition, a statement from Withings was also included, courtesy of CEO Cédric Hutchings:
Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and wellbeing. We’re excited to join Nokia to help bring our vision of connected health to more people around the world.
The acquisition is expected to close in Q3 of this year, assuming everything