Walmart Acquires Health Management Startup CareZone's Technology, Reportedly For $200M

Walmart Inc. WMT has acquired CareZone's technology and intellectual property, the retailing giant confirmed to CNBC on Monday.

What Happened

CareZone provides health and medicine management services to its customers through mobile apps. The startup also runs an e-commerce platform "CareFlow," where it delivers medications sorted by the doses listed on the prescription.

According to CNBC, the online pharmacy isn't part of the Walmart acquisition. About 25 to 30 engineers from the CareZone team will join the Arkansas-based company to help it develop its health and wellness line of services.

Walmart didn't share financial details of the transaction, but sources close to the matter told CNBC that it paid $200 million for the acquisition.

Why It Matters

Healthcare has been a key growth area for the e-commerce sector, and Walmart competes with Amazon.com Inc. AMZN for the market share.

The Seattle-based rival in June 2018 acquired PillPack, which offered similar services as CareZone, beating Walmart with a higher bidding price at the time.

Price Action

Walmart shares closed nearly 0.3% higher at $118.08 on Monday. The shares added another 0.4% in the after-hours session at $118.60.

Image: CareZone

Posted In: CNBCe-commercetelemedicineM&ANewsHealth CareStartupsTechMediaGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.