Samsung builds digital health credentials with Xealth buy

South Korean electronics giant Samsung has continued a push into the health category with an agreement to buy Xealth, a Seattle, US-based company set up to help healthcare professionals prescribe digital health technology (DHT).

The deal marks an expansion of Samsung's ambition in the category, building on its strong presence in the sensor technologies and wearables market that has already resulted in research partnerships with pharma companies, including with Bayer on sleep disturbances, and deployment of artificial intelligence to help manage what can be overwhelming amounts of often fragmented health and wellness data.

Xealth's primary business is centred on creating an ecosystem that enables doctors to integrate DHT into their daily practices, working with over 70 DHT providers. Additionally, the company's apps offer real-time monitoring and patient engagement through a network of more than 500 hospitals across the US.

Samsung said the takeover will advance its "transformation into a connected care platform that bridges wellness and medical care, bringing a seamless and holistic approach to preventative care to as many people as possible."

Samsung is the second-largest wearables company with its watch and ring devices, behind Apple, with other players like Google growing fast and nipping at their heels. Last year, Samsung overtook Apple to become the number one smartphone manufacturer based on unit shipments.

Drawing on its smartphone and wearables expertise, the company has been building a health platform, Samsung Health, with features like blood oxygen and blood pressure measurement, body mass composition, ECG technology to monitor heart function, calorie intake measurement, fitness tracking, and detection of sleep apnoea.

On the AI front, meanwhile, it has collaborated with academics at the University of Georgia to create Energy Score, an app that works with wearables to monitor health indicators such as activity levels, sleep, heart rate during sleep, and heart rate variability during sleep. Future developments could include nutrition, mental health, and mobile device usage patterns.

Other projects include the development of nutrition coaching for use with continuous glucose monitoring (CGM) technology for people living with diabetes and non-invasive technologies for tracking blood glucose levels.

"Samsung aims to improve the health of everyone through our extensive platform combining Samsung's innovative technologies and open collaboration with industry leaders," said TM Roh, president and acting head of the company's device experience (DX) division.

"We believe the acquisition of Xealth, with its accumulated expertise and extensive healthcare network, will be an anchor to accelerate Samsung's efforts to support health systems and digital health partners through a truly connected care."

Samsung said it expects the takeover to complete before the end of the year. Financial terms have not been disclosed.