Nokia announced on April 26 that it is planning to buy French electronics company Withings for €170 million ($191 million) in cash in order to expand its presence in the digital health industry. The planned acquisition is expected to add Withings' portfolio of fitness and other wearable devices into Nokia's division for advanced technologies.
Nokia president and CEO Rajeev Suri explained that digital health has been an area of interest for the company, and that it is now taking steps to breakthrough in this vital 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," Suri said.
The deal to buy Withings comes two years after the Finnish tech company sold its telecommunications division to Microsoft, choosing to focus more on selling network equipment instead.
However, Nokia continues to operate a small technologies unit that specializes in finding ways to help the company regain its prominence in the consumer electronics industry in the long run, aside from its plans of investment in 5G.
The Issy-les-Moulineaux-based Withings has mostly dealt with the creation of fitness devices such as the Wi-Fi Body Scale, the E-ink fitness tracker, the Bluetooth thermometer and the Activité smartwatch.
In a letter posted on the company's website, Withings chief executive Cédric Hutchings said the goals of the two companies "perfectly aligned" with regards to the deal.
He pointed out that Nokia's vision of providing consumers with beautifully designed products echoes Withings' own ambitions, and that the two companies now both have a solid ground to build on.
According to reports, the acquisition will be completed in the middle of the year. Withings' 200 workers will then be incorporated into Nokia Technologies. Hutchings is expected to report to Ramzi Haidamus, head of Nokia Technologies.
