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Fitbit to acquire Twine Health
Posted on Tuesday, 13 February 2018 15:21
Fitbit is looking to enhance healthcare service offerings by agreeing to acquire startup Twine Health.
While financial terms of the transaction were not disclosed, the deal brings together the acquiror’s leading brand and millions of followers, with a clinically proven health coaching platform to better improve outcomes for customers and, ultimately, lower medical costs.
Twine’s service connects people suffering from chronic conditions such as diabetes and hypertension with coaches and doctors who can then help form plans for them to follow a healthier lifestyle.
Fitbit expects to add data from its wearable devices, such as tracking physical activity and sleep, to the target’s existing capabilities, allowing the Boston-based startup to access some of 25.00 million-plus users.
As part of the acquisition, the Twine team will join the acqurior following closing, expected in the first quarter of 2018, as part of the group’s health solutions business.
Founder Dr John Moore will serve as Fitbit’s medical director.
The buyer is expected to further extend its reach into healthcare, while creating more opportunities to increase its subscription-based revenue as it struggles with a decline in growth following a 35.0 per cent decrease in sales in the opening nine months of 2017 and an average 70.0 per cent drop in share prices since its 2015 listing.
One area the group can expand into is the health care industry and corporate wellness programmes.
James Park, co-founder and chief executive of Fitbit, said Twines expertise in conditions such as diabetes and hypertension are “two key focus areas” for the company as together they “affect 105.00 million people in the US alone”.
The buyer’s last recorded purchase was for certain assets of Romanian luxury designer watch manufacturer Vector Watch in December 2016 for an undisclosed amount.
Shares in Fitbit declined slightly at USD 5.18 at 9:46 today, valuing the business at roughly USD 1.22 billion.
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