Best Buy to acquire senior-focused tech company for $800M
Best Buy has entered into an agreement to purchase health services provider GreatCall for $800 million in cash, the consumer electronics retailer announced Wednesday, Aug. 15. GreatCall owns a suite of mobile products aimed at aging consumers, including products like the Jitterbug phones and safety and wellness apps as well as medical alert devices and other technology to support independence among old adults.
“We know technology can improve the quality of life of the aging population and those who care for them,” Hubert Joly, chairman and CEO of Best Buy, said in a statement. “Now, we have a great opportunity to serve the needs of these customers by combining GreatCall’s expertise with Best Buy’s unique merchandising, marketing, sales and services capabilities.”
The acquisition adds to Best Buy’s growing business of health and wellness products. It has also been investing in health-related initiatives aimed at the aging population. In 2017, Best Buy launched its Assured Living Program, a sensor-based technology service that offers solutions for seniors to help them age in place at home.
GreatCall offers many similar products to support that independence of older adults, with an annual revenue of more than $300 million. Best Buy expects the deal to close by the end of the third quarter in 2019, according to a public filing.
“Since the launch of GreatCall, we’ve focused on providing the very best technology and services to the aging population, giving them and their families the peace of mind that comes with the right technology and support to help keep them safe and improve their lives,” David Inns, CEO of GreatCall, said in a statement. “We are excited to partner with Best Buy to serve the active aging population on a bigger scale. …By joining forces, we can do even more for this population, combining our products, services and expertise with Best Buy’s customer focus and scale to meaningfully expand our reach.”
GreatCall will maintain its San Diego headquarters and its care centers in Carlsbad, California, and Reno, Nevada. Inns will remain as CEO, according to the announcement.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."