Nokia will buy digital health firm Withings for $191 million

Nokia has announced that it will acquire Withings, a France based company popular for its digital health products and services for 170 million euros ($191 million). Withings said that the combination of innovative products from the company, and Digital Health business will ensure the ongoing renewal of Nokia.

As the deal closes Withings will join Nokia and start working together, however the Withings applications and products will continue to work in the same way. The transaction would be settled in cash and is expected to close by early Q3 2016, subject to regulatory approvals and customary closing conditions.

Withings was founded in 2008 and the company's product portfolio includes activity trackers, weighing scale, thermometers, blood pressure monitors and more. The products are complemented by an ecosystem of more than a hundred compatible apps.

Commenting on the new acquisition, Rajeev Suri, president & CEO of Nokia,said: 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. 

Regarding joining Nokia, Cédric Hutchings, CEO of Withings, said: 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. 

To recap, Nokia, once the world's largest handset maker sold it's mobile division to Microsoft back in 2007, and Nokia had to give up the Lumia name, and the terms of the deal obliged Nokia not to make any smartphones until late 2016. Since then, Nokia has launched an Android tablet, the Nokia N1, which received overwhelming response and Ozo, a virtual reality camera. Now it appears that Nokia will be making a comeback to the market, not with a smartphone, but with a wearable device.