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Nokia Eyes Wearables Market With Deal To Acquire Withings

Continues shift back to consumer devices market 4/26/2016 08:00:00 AM Eastern

Nokia said it is staking a claim in the consumer wearables and connected-home markets with the acquisition of Withings, the French manufacturer of fitness and health tracking devices and Internet-connected smart devices.

The purchase price was not announced but Nokia will pay cash for Withings and intends to close on the deal in Q3.

Withings will become part of Nokia’s revamped consumer electronics business, which includes selling licensed smartphones and its own virtual-reality cameras.

The Finnish company sold its mobile devices business to Microsoft two years ago.

Withings’ product portfolio includes app-driven fitness bands, health monitors and scales, as well security cameras and home thermostats.

 A Nokia statement said Withings’ leadership in the connected-health space “melds perfectly with Nokia’s heritage of connecting people.”

“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, chief executive of Nokia.

“Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and well-being,” said Cédric Hutchings, Withings CEO.

Withings has approximately 200 employees in four offices around the globe.

The deal marks a change in Nokia’s strategic direction in recent years, one that took the company away from the mainstream consumer devices market and instead focusing on its vast portfolio of patents in the mobile market. But Withings also holds a number of patents, and Nokia said Withings’ business “will also ensure the ongoing renewal of Nokia Technologies’ world-class [patent] portfolio.”

Nokia’s statement said the acquisition of Withings was driven by the growth of the “connected-health revolution,” citing analysts’ predictions that the healthcare segment of the Internet of Things will grow by 37 percent from 2015 to 2020.

 “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,” Nokia’s Suri said.

Nokia said it is staking a claim in the consumer wearables and connected-home markets with the acquisition of Withings, the French manufacturer of fitness and health tracking devices and Internet-connected smart devices.

The purchase price was not announced but Nokia will pay cash for Withings and intends to close on the deal in Q3.

Withings will become part of Nokia’s revamped consumer electronics business, which includes selling licensed smartphones and its own virtual-reality cameras.

The Finnish company sold its mobile devices business to Microsoft two years ago.

Withings’ product portfolio includes app-driven fitness bands, health monitors and scales, as well security cameras and home thermostats.

 A Nokia statement said Withings’ leadership in the connected-health space “melds perfectly with Nokia’s heritage of connecting people.”

“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, chief executive of Nokia.

“Since we started Withings, our passion has been in empowering people to track their lifestyle and improve their health and well-being,” said Cédric Hutchings, Withings CEO.

Withings has approximately 200 employees in four offices around the globe.

The deal marks a change in Nokia’s strategic direction in recent years, one that took the company away from the mainstream consumer devices market and instead focusing on its vast portfolio of patents in the mobile market. But Withings also holds a number of patents, and Nokia said Withings’ business “will also ensure the ongoing renewal of Nokia Technologies’ world-class [patent] portfolio.”

Nokia’s statement said the acquisition of Withings was driven by the growth of the “connected-health revolution,” citing analysts’ predictions that the healthcare segment of the Internet of Things will grow by 37 percent from 2015 to 2020.

 “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,” Nokia’s Suri said.

 

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