Nokia Announces Acquisition Of A Digital Health Products And Services Company For 170 Million Euro

Nokia Corp (ADR) NOK announced on Tuesday it has entered into an agreement to acquire Withings S.A., a leader in the connected health revolution that offers digital health products and services for 170 million euro.

Withings will become part of the Nokia Technologies business.

According to Engadget, Nokia bought Withings to counter Apple Inc. AAPL HealthKit service. The publication added Nokia "seems to be borrowing strategy from both Apple and Fitbit Inc FIT.

Engadget added that the acquisition price "seems low for a company like Withings" as the company could have been experienced cash-flow problems that "precipitated a rescue purchase."

"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 in the company's press release. "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."

"Withings shares our vision for the future of digital health and their products are smart, well designed and already helping people live healthier lives," said Ramzi Haidamus, president of Nokia Technologies. "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."