ESPOO, Finland – After acquiring Withings in 2016 to establish itself in digital health, Nokia has announced it will sell its Digital Health business back to Éric Carreel, co-founder and former chairman of Withings.
Following a review of its options for the digital health business earlier this year, Nokia decided to cut its losses and focus instead on becoming a business-to-business and licensing company, company officials said in a statement.
“Rather than only falling in love with our technology, we must be honest with ourselves,” said Kathrin Buvac, chief strategy officer for Nokia, in a company memo that was leaked. “In its entirety, our digital health business has struggled to scale and meet its growth expectations. Currently, we don’t see a path for it to become a meaningful part of a company as large as Nokia.”
The new agreement is expected to close later this year.
Nokia’s digital health 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.