Nokia is attempting to get back into producing consumer-grade devices and jumpstarting its wearables product catalog, by acquiring health company Withings. The French wearable device and fitness tracker producer is being bought by the former smartphone producer for
€170 million ($191 million), subject to regulatory approval, with the cash deal expected to close early in the third quarter of this year.
"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," advises CEO and President of Nokia Rajeev Suri. The acquisition is claimed to strengthen Nokia's standings in the Internet of Things business, with Suri suggesting it "puts us at the heart of a very addressable market where we can make a meaningful difference in people's lives."
The acquisition of
Withings will give Nokia a considerable jump in terms of its consumer device catalog, following the sale of its
Devices and Services arm to Microsoft in April 2014. This time last year, it was revealed Nokia was prevented from selling smartphones for a
two-year period after the sale, but it still allowed the company to move onwards with the creation of the
Nokia N1 tablet and the professional-grade
Ozo 360-degree video camera. Wearable devices could be a logical jump for Nokia, if it intends to re-enter the smartphone market after the hiatus.
While Withings will be incorporated into Nokia Technologies, the part of the business that mostly deals with patent licensing, it is unclear if the brand will live on or be replaced by the Nokia name.
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