Telecoms giant Nokia to sell digital health unit back to Withings co-founder Éric Carreel.
Nokia has revealed plans to sell its digital health hardware and service business to Éric Carreel, the co-founder and former chair of Withings.
Nokia acquired Withings two years ago for $191m (€170m) and branched out into various enterprise and consumer internet of things (IoT) devices, including fitness trackers and digital scales devices under its digital health portfolio.
However, the foray showed very little financial pulse and, as such, Nokia was forced to write down $164m (€141m) on its digital health assets.
A strategic review followed this year and, in Nokia’s Q1, the group brought in just €16m in revenues out of the overall €4.9bn in sales for the quarter.
It is understood that Google and Samsung were interested in potentially acquiring the division.
What’s the deal with Carreel?
Nokia has not disclosed how much the business will sell for. The deal is expected to close in late Q2.
“Digital Health’s business portfolio includes consumer and enterprise products, and it manufactures and sells an ecosystem of hybrid smart watches, scales and digital health devices to consumers and enterprise partners,” Nokia said in a statement.
“The licensing businesses of Nokia Technologies are not affected by this announcement.”