‘We see this acquisition as a beachhead,’ says CEO
RICHFIELD, Minn. – Industry leaders are optimistic that Best Buy’s recent $800 million acquisition of GreatCall will open up access to health care.
“This could be a way to open health care access to rural or elderly patients,” said Brian Young, director of health care solutions at Vidyo, a health care video technology provider. “I think any movement in this category to try and improve access to health services is a good thing.”
Best Buy already has a growing business selling health and wellness related products, and has been investing in health-related initiatives focused on the aging population. The company introduced the Assured Living senior home monitoring service last year.
“We are acquiring a great company that is profitable and growing, with more than $300 million in annual revenue,” Hubert Joly, CEO of Best Buy, said in a Q2 earnings call on Tuesday. “We see significant value creation opportunities to create an attractive ROI, and opportunities to scale the existing business. We also see this acquisition as a beachhead for Best Buy in the health space, providing more growth and opportunities.”
Dean Mihas, managing director of private equity firm GTCR, which acquired GreatCall last year, said the deal was the right fit at the right time.
“We had a strategic buyer with a highly strategic fit for our business and that made sense for both of us,” he said.
Young said Best Buy’s acquisition is in line with a general trend in health care M&A that will have a positive impact for patients and providers.
“We’re seeing more and more consumer goods companies and retail entities moving into the health care space and that’s a good thing,” he said. “These companies are seen as innovators and they understand consumer behaviors.”