Nokia may not be a phone maker any more, but they’re still interested in the mobile industry… and by the end of this year, they’ll be a much bigger part of it. The Finnish company announced the acquisition of health firm Withings today, in a deal worth €170 million in cash (£132 million).
Withings are makers of several health-focused accessories including Activité smartwatches, Go fitness trackers, smart scales and more. We’ve highlighted Withings products several times on this blog, and they’ve largely been well received by the press too thanks to elegant designs and good usability.
President and CEO of Nokia Rajeev Suri issued the following statement:
“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 acquisition is just one of several moves by Nokia to get back into the game after Microsoft purchased their flagging mobile division in 2013. They bought Alcatel-Lucent a year ago, then sold its Here maps division for $3 billion to a group of German auto makers. It’ll be interesting to see how or if Withings’ focus will change post-acquisition, and whether Nokia will change their branding or let the company operate more independently. The acquisition is expected to close in the third quarter of 2016, as 200 Withings employees join Nokia.
What do you think of the acquisition? Let us know in the comments below, or write to us on Twitter @mobilefun! Thanks for checking out the article and have a great week!