Global wearables juggernaut Fitbit has introduced plans to accumulate Twine Health, a well being teaching platform aimed toward serving to employers handle persistent illness within the workforce. Terms of the deal weren’t disclosed.
Founded out of Cambridge, Massachusetts in 2014, Twine Health is a cloud-based platform that connects clinicians with sufferers to allow them to create plans and collaborate via synchronized apps towards assembly designated targets. It’s additionally designed to assist employers reduce down on their in-house well being care prices.
Twine Health had raised round $10 million in fairness funding, so it’s unlikely this acquisition broke the financial institution for Fitbit. Moreover, the transfer indicators Fitbit’s continued push into the company wellness market, which it has been concentrating on via numerous initiatives lately.
Fitbit could also be higher generally known as a shopper expertise model, but it surely has lengthy partnered with huge companies, together with BP, Barclays, and Target, which have sought to encourage worker health by giving staff exercise trackers totally free. This effort has been underpinned by gamification of assorted facets of corporations’ health-promotion packages.
Fitbit had made round 5 acquisitions prior to now, together with a startup known as Switch2Health that developed a wellness platform for monitoring staff’ health efforts and rewarding them for sustaining wholesome ranges of exercise. So it’s clear Fitbit has seen the potential of the enterprise marketplace for a while, and this newest deal matches neatly into that scheme.
“Twine Health has delivered highly effective outcomes for sufferers managing situations like diabetes and hypertension — two key focus areas for Fitbit, which collectively have an effect on roughly 105 million individuals within the U.S. alone,” stated Fitbit cofounder and CEO James Park. “When mixed with our decade-plus of expertise empowering hundreds of thousands of customers to take management of their well being and wellness, we imagine we can assist construct stronger connections between individuals and their care groups by eradicating among the most troublesome limitations to habits change.”
According to the Centers for Disease Control and Prevention (CDC), as much as $2.5 trillion is spent on persistent illness care within the U.S. every year. Indeed, 40 % of U.S. adults are thought of overweight, whereas greater than 70 % are chubby. Additionally, 10 % of the U.S. inhabitants (29.1 million individuals) have diabetes, and greater than a 3rd (86 million individuals) are on their option to creating diabetes. It’s in opposition to this backdrop that Fitbit is trying to merge its established presence within the health realm with Twine Health’s id as a company wellness platform.
Indeed, Fitbit stated the deal lays the inspiration for enlargement into employer well being plans whereas giving the corporate important leverage to extend its subscription-based income. Looking additional into the long run, Fitbit stated that it additionally plans to cross-sell Twine Health’s advantages to its current customers because it expands “into new situation areas,” in response to a press launch.
“Together, we can assist well being care suppliers higher assist sufferers past the partitions of the medical surroundings, which may result in higher well being outcomes and in the end, decrease medical prices,” added Park.
The acquisition is predicted to shut in Q1 2018.
This article sources info from VentureBeat