To build its business of health technology, the company announced on Tuesday that it acquired Withings, which is a maker of activity trackers, smart scales and other electronic gadgets used in the health field.
While Nokia is based in Finland and Withings in France, the transaction in euros is 170 million or close to $192 million.
Nokia believes the deal will close this year during the third quarter, with Withings under the Nokia Technologies umbrella.
Withings raised just less than $34 million from investors including Indivest, BPIFrance, 360 Capital Partners and Ventech.
The deal is not just a sign of Nokia believing it has more still to do with gadgets, but a big sign of how the business is returning to its playbook of before building businesses that are vertically integrated.
In this instance, acquiring Withings is not only about health trackers, thermometers, BP monitors and other gadgets that consumer will purchase, but the larger business of connecting them and operating a wider array of services that are cloud based under that hood, which is known otherwise as the Internet of Things.
Nokia in a prepared statement said that with the acquisition Nokia will strengthen its position in Internet of Things that will leverage the power of its trusted brand, fit with its company purpose of growing the human possibilities in a connected world and put the business in the heart of a very large market where it can make a difference that is meaningful to the lives of people.
This acquisition is the first for Nokia in years that is focused on technology for the consumer, as the last several have been for building out its networking and mobile back end businesses such as with its most recent acquisition of Alcatel-Lucent.
The acquisition is also smart for another part of the remaining business of Nokia – its patents. Nokia might not make as many waves in today’s mobile phone patents, as it did so many years ago, but it continues milking them for royalties with businesses such as Apple and Withings will ensure that continues.