US retailer Best Buy has agreed to acquire GreatCall, the make of seniors phones and apps under the brands Lively and Jitterbug, for USD 800 million in cash.
GreatCall has annual sales of over USD 300 million and counts over 900,000 paid subscribers for its connected health and personal emergency response services provided with the phones. Best Buy said the takeover fits its strategy "to enrich lives through technology by addressing key human needs". The company sees strong growth prospects for the connected health and elderly market segments, with the number of Americans aged over 65 expected to increase by more than 50 percent within the next 20 years.
Best Buy already has a growing business selling health- and wellness-related products. It also has been investing in health-related initiatives focused on the aging population, along with several health care providers and insurers.
GreatCall will maintain its San Diego headquarters, as well as its care centres in Carlsbad, California, and Reno, Nevada. David Inns, who has been with GreatCall since its formation in 2006, will remain as CEO.
The transaction is expected to close by the end of Best Buy's fiscal third quarter, and the company expects a neutral impact on adjusted earnings in fiscal 2019 and 2020 and a profitable contribution from 2021.
