Nokia announced Tuesday it will acquire health gadget creator Withings as part of a broader plan to move into the digital health market.
The deal values the French-based Withings at $191 million, says a statement from Nokia. The acquisition is expected to close by the third quarter of this year.
"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," said Nokia president and CEO Rajeev Suri in a statement.
Withings, founded in 2008, sells a variety of connected health products including fitness bands, scales and blood pressure monitors. A joint letter from Withings CEO Cédric Hutchings and Chairman Eric Carreel says the company is "impressed" with Nokia's vision for health tech such as patient care.
"Since the beginning, we have always prioritized the usability of our products," reads the joint statement. "We ask ourselves if we are really making a difference by adding a connection to a product. Is there a clear purpose for what we do? Can we make the product simpler? The Nokia vision of creating beautifully designed products that blend seamlessly into the everyday lives of real people echoes exactly the same sentiment."
Shares of Nokia are up nearly 1% in morning trading.
Since selling its mobile handset business to Microsoft for more than $7 billion, Nokia is shifting to networking and digital health. Last year, Nokia confirmed it would acquire French networking company Alcatel-Lucent for $17 billion.
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