UNITED KINGDOM – According to Best Buy’s most recent quarterly earnings, the company has spent nearly US$400 million to acquire remote patient monitoring technology vendor Current Health.
Best Buy announced the all-cash acquisition of Current Health last month but did not disclose financial terms. During an earnings call this week, Current Health confirmed the valuation, which makes it Europe’s second-largest digital health exit.
The medtech company, founded in Scotland in 2015 by CEO Christopher McCann and CTO Stewart Whiting, combines remote patient monitoring, telehealth, and patient engagement into a single platform for healthcare organizations.
To provide real-time insights into a patient’s condition, the platform uses data collected from a monitoring wearable device worn by the patient.
The acquisition comes on the heels of Current Health’s US$11.5 million (£9 million) Series A funding round led by MMC Ventures in 2019.
Since July 2018, the VC has made several investments in the company, including a pro rata contribution to Current Health’s US$40 million US Series B earlier this year.
The Series A funding enabled the company to expand its US team, which now includes non-executive director Todd Rothenhaus, CFO John McLean, and chief medical officer Adam Wolfberg.
This resulted in collaboration agreements with the Mayo Clinic and Dexcom, putting the company in a strong position ahead of the global coronavirus pandemic.
The Series B round provided US$40 million from US healthcare venture capitalists and existing investors to fund the company’s accelerating growth, and Best Buy approached the company shortly after.
“Over the coming decade, significantly more healthcare can be delivered in the home,” said Christopher McCann, CEO, Current Health. “We started Current Health to make that exciting transition radically easier for healthcare providers to achieve. We’re excited to join with Best Buy Health to move safe and effective healthcare into the home globally.”
Today, 13 of the largest healthcare systems in the United States and the United Kingdom use Current Health is to manage patient care, including Mount Sinai and Dartford & Gravesham NHS Trust.
Best Buy’s acquisition of Current Health is the retailer’s latest foray into the home health care market. It paid US$800 million for the acquisition of Great Call, an emergency response services company, in 2018.
Best Buy’s healthcare push
With its Current Health acquisition, Best Buy aims to “create a holistic care ecosystem” built on the company’s remote monitoring platform and Best Buy’s connection to the home, company CEO, Ms. Corie Barry said during the earnings call, according to The Motley Fool.
Best Buy Health’s strategy focuses on three key areas. The first is consumer health for customers who need to monitor a chronic condition, sleep better, or improve their health.
The second area of focus for Best Buy Health is active aging, which includes device-based emergency response and other services for elderly patients who want to live independently in their homes.
Best Buy Health’s third focus is virtual care, which the Current Health acquisition will help to expand, according to Ms. Barry.
The platform’s wearable device for monitoring patient vital signs, as well as its integration with EHRs, are intended to assist Best Buy in providing care for patients in their homes while remaining connected to healthcare providers.