The Finnish technology company, Nokia, is all set to buy the French consumer electronics company, Withings for $190 million. The reports suggest that Nokia is making efforts to enter the consumer-centric market once again with the focus on the future of the digital technology market. According to the latest information, once the proposed acquisition plan is accepted, Withings will be involved in all the brand building, digital media and patent licensing of the technology giant.
The CEO of Nokia, Rajeev Suri, said that the Withings acquisition will help the company to continue the renewal process of Nokia Technologies intellectual property portfolio.
“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, as reported by Ars Technica. “IOT 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.”
Moreover, Bloomberg reported that with the acquisition, Nokia is trying to strengthen its position in the Internet of Things zone. The analysts also noted that the takeover will aid the company to build a trusted brand name.
Further, Withings CEO, Cedric Hutchings, also stated the expected changes that would take place in the company after the takeover. “We’ve been impressed with the plans the Nokia team has shared with us both for Preventive Health and Patient Care,” said Hutchings, as reported by Wall Street Journal. “As soon as we close the deal, we can start working together to determine our way forward as one team with a broad but focused portfolio of incredible products and innovations.”
But, Cedric emphasized that the company’s applications and products will continue to work in the same way and that its existing customers will receive the same service as before.
Meanwhile, The Verge reported that Nokia still generates significant revenue from its proprietorship of one of the largest collections of patents in the mobile phone market, even though its presence in the consumer electronics area is low. Further, Withings is mainly involved in the development of connected health appliances, including smart watches, fitness trackers, thermometers, and baby monitors.
Nokia’s planned buyout of Withings is expected to be completed in the third financial quarter of 2016. After the deal is done with the cash payment, Withings’ 200 employees will join Nokia Technologies. It is also reported that the team headed by Withings CEO will report to Nokia Technologies head, Ramzi Haidamus.