QUALCOMM, Inc. (NASDAQ:QCOM) announced the acquisition of Capsule Tech on Monday. The acquisition would aid the firm’s Qualcomm Life division, a healthcare equipment provider, to better assist healthcare organizations.
Capsule’s healthcare related software and hardware products are already available in market. The devices provided by the Capsule assists hospitals and other healthcare facilities to better look after their patients as Capsule’s devices pulls patient data from medical devices and then transfer this data to management server, where the data can be analyze by doctors. Qualcomm Life subsidiary’s 2Net product on similar grounds collects and sends data to doctors’ backend cloud systems.
However, value of the deal hasn’t revealed yet. Qualcomm acquired Capsule from JMI Equity and Bulger Capital Partners, which had owned a majority stake in the firm since 2012.
This isn’t the Qualcomm’s prior revenue contributor domain. The firm mainly specializes in mobile chips. The increasingly focus of smartphone companies to reap chips in their own facilities is continuously hurting the chip business of Qualcomm. Samsung is making its own in-house chips with Apple Inc. (NASDAQ:AAPL) pouring chips from Intel and last month Xiaomi has also announced production of its own in-house mobile chips. Qualcomm once the leading provider of mobile chips to Apple and Samsung lost its partnerships with these giants. And now another major partner is going away from Qualcomm. Last month the firm has also fired many workers due to slumping growth of its chip business, thus Qualcomm is looking for new markets to maintain its growth.
The acquisition would provide expansion leverage and better focus on health related measures. Capsule offers its services to 1,930 hospital clients in 38 countries. Qualcomm started selling 2Net products about four years ago and currently sells the product to more than 500 companies to help them collect patient data in the home.
“We now have the largest ecosystem of connected medical devices with Capsule,” said Rick Valencia, senior vice president and general manager of Qualcomm Life. “We’re extending our reach from the home to the hospital and all the points in between, so wherever the patient might be. We’ll create the connective tissue to bring all this data back into the system.”
