Best Buy Purchases Connected Health Service GreatCall
If you thought the mergers were over, it’s quite the opposite. Breaking news today was the rise in Best Buy shares as they announced their acquisition of San Diego-based GreatCall. GreatCall, a health technology company that focuses on the elderly, will help Best Buy have entry into the health market, which has continuously transformed through the adaption of tech advances. How will this purchase affect the healthcare market and the tech world? Today, we will take a look at Best Buy’s move into health tech services.
Best Buy Hopes to Compete in the Senior Market
Best Buy can be found it almost every city in the US. Known for its advanced tech options, it isn’t a surprise that Best Buy has taken a step towards health tech. The switch is a shift from Best Buy’s original retail services to services and devices, giving Best Buy better business efficiency, staff morale, and security. The purchase is part of Best Buy’s 2020 strategy that hopes to address and help customer needs using technology. With the increasing elderly market, averaging about 50 million Americans and soon to double in the next 20 years, there will be a higher demand for tech help in the elderly demographic.
GreatCall provides connected health for active aging. From smart watches, alarms, phones, and more, GreatCall offers easy to use products to help aging consumers live independently. By purchasing the company, Best Buy will inherit not only the huge consumer base of GreatCall, but also provide much-needed advancements in their current tech offerings. We can expect newer products with a wider range of abilities as the merge begins. The deal is expected to close in Best Buy’s 2019 third quarter and to boost earnings by fiscal year 2021. With a market worth of $28 billion and growing, Best Buy has made a smart investment for its future.
This is one of many mergers that have happened over the past few months. With companies like Amazon, Walmart, CVS, and more combining with major health/tech companies, it shows that everyone wants a piece of the health market. Stay tuned for more updates on future mergers, buyouts, and more.