Current Health is a technology platform that enables healthcare organizations to deliver low-cost, high quality medical care to patients in real time through telehealth and remote monitoring using data from biosensors, such as wearable devices.
Though financial terms of the deal were not disclosed, the consumer electronics retailer said in a Securities and Exchange Commission filing that the transaction is expected to close by the end of its fiscal 2022 fourth quarter. The deal will be financed with cash and is not expected to impact Best Buy's previously announced plan to spend more than $2.5 billion on share repurchases during fiscal 2022.
Best Buy Health president Deborah Di Sanzo said the acquisition will combine Current Health's platform with its existing health products and services to create a "holistic care ecosystem."
"Over the coming decade, significantly more health care can be delivered in the home," Current Health CEO Christopher McCann added. "Best Buy has unparalleled physical reach, world-class supply chain logistics, and trusted support services–allowing us to provide a high-touch consumer experience, at scale."
The move builds upon Best Buy's acquisition of health services company Critical Signal Technologies in 2019 and an $800 million acquisition of Jitterbug flip phone manufacturer GreatCall in 2018 as the company looks to bolster its position with new products in the fitness, wearables, health and wellness categories.
Best Buy CEO Corie Barry told analysts during the company's fiscal 2022 second quarter earnings call in August that it has more than doubled its vendor partners and grown its SKU count across fitness, wearables, wellness and health by more than 150% within the past year.
"These include new products important to our health strategy, specifically those focused on conditional health management that help customers track blood glucose levels, keep tabs on heart data, manage weight or even help identify allergens in foods," Barry added. "Furthermore, we are working with hospitals and care centers to curate health products for their patients on co-branded landing pages."
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Despite Tuesday's announcement, Best Buy shares are trading flat as of the time of publication.