The
world’s
tech
giants
continue
to
go
after
strategic
acquisitions
aimed
at
deepening
their
presence
in
the
healthcare
world.
On
Tuesday,
Samsung
announced
its
plans
to
acquire
Xealth,
a
digital
health
startup
spun
out
of
Providence
eight
years
ago.
The
deal
marks
the
Korean
tech
giant’s
second
major
health
acquisition
in
less
than
a
year,
as
Samsung
bought
French
prenatal
ultrasound
startup
Sonio
in
a
$92
million
deal
that
closed
in
August.
Financial
details
of
the
Xealth
acquisition
were
not
disclosed.
Samsung
has
developed
a
suite
of
products
over
the
last
few
years
to
monitor
health
at
home,
such
as
wearables
and
ambient
sensors.
The
company
also
wants
to
turn
its
devices
like
phones,
TVs
and
other
appliances
into
a
foundation
for
ambient
home
health
monitoring
over
the
next
couple
of
decades.
To
act
on
that
vision,
Samsung
needs
integration
into
clinical
workflows,
hence
the
acquisition
of
Xealth.
Seattle-based
Xealth
works
with
health
systems
to
help
them
integrate
digital
tools
into
providers’
workflows.
The
company
combines
various
tools
from
different
vendors
into
a
single
platform,
which
gives
providers
a
more
accurate
view
of
their
patients’
health.
Its
customer
network
spans
more
than
500
hospitals
across
the
country,
such
as
Providence,
UPMC,
Mass
General
Brigham,
Advocate
Health
and
Banner
Health.
Xealth
CEO
Mike
McSherry
said
the
deal
was
made
because
his
company
had
reached
the
typical
growth
ceiling
for
a
digital
health
startup,
so
if
it
wanted
to
scale
any
more,
it
was
going
to
have
to
do
so
through
an
acquisition
or
IPO.
“The
timing
worked
out
perfectly
with
Samsung’s
aspiration
to
get
deeper
into
clinical
workflows
with
their
devices
and
the
data
stemming
from
some
of
those
devices.
As
they
looked
around
the
industry,
we
wound
up
to
be
the
perfect
partner
for
them,”
he
explained.
“Samsung
recognized
that
the
healthcare
market
is
distinct,
and
they
didn’t
necessarily
have
the
expertise
on
how
to
work
with
hospital
systems.”
The
deal
is
still
subject
to
regulatory
reviews
—
but
if
it
goes
through,
Xealth
will
be
a
wholly
owned
subsidiary
of
Samsung
Electronics.
McSherry
will
remain
CEO,
and
the
rest
of
the
executive
team
will
retain
their
positions
as
well,
he
said.
This
acquisition
comes
at
a
time
when
the
outlook
for
digital
health
startup
exits
is
becoming
increasingly
optimistic.
The
first
half
of
2025
contained
the
long-awaited
IPOs
of
Hinge
Health
and
Omada
Health,
two
exits
that
many
felt
were
overdue
following
years
of
stagnation.
There
have
also
been
plenty
of
digital
health
startups
exiting
through
M&A
this
year,
with
more
than
100
deals
in
the
past
six
months
—
which
puts
the
year
on
pace
to
nearly
double
2024’s
total.
McSherry
attributes
the
industry’s
momentum
largely
to
the
rapid
pace
at
which
providers
have
adopted
new
technology
in
recent
years.
“Providers
are
playing
a
strong
role
in
adopting
and
deploying
and
distributing
digital
health
solutions.
It
was
largely
payers
and
employers
who
were
the
early
adopters.
We’re
seeing
an
increase
in
interest
in
the
number
of
different
digital
solutions
that
our
provider
customers
want
to
deploy
to
their
patient
populations,”
McSherry
declared.
With
providers
now
leading
the
charge
in
digital
adoption,
Samsung’s
bet
on
Xealth
may
prove
wise.
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designer491,
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