Nokia acquires wearables company Withings for €170 million

Withings Activité SteelThere have been a number of recent hints recently that Nokia was looking to enter the wearables space. The company today confirmed these rumours with the announcement that it was acquiring wearable company Withings for €170 million (about US$191 or CA$242 million). Nokia expects that the move will allow it to “lead the next wave of innovation in digital health.”

“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 & 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.”

Nokia expects that healthcare will be one of the largest vertical markets in the Internet of Things. Mobile health in particular is expected to be the fastest growing health care segment between now and 2020 with a compound annual growth rate of 37%.

Withings Go

Withings is the French company behind a collection of connected health-focused devices including the Activité smartwatch collection and the Withings Go fitness tracker announced at CES 2016. It has about 200 employees.

The acquisition is expected to close in early Q3 2016 subject to regulatory approvals and customary closing conditions. Once completed, Withings will become part of the Nokia Technologies business unit.

Source : Nokia