On August 31, 2016, it was announced that iHealth Labs have acquired eDevice. Although both companies are active in the medical sector, iHealth Labs has mainly emphasized its efforts within the consumer domain, while eDevice has provided its connected solutions to the remote patient monitoring (RPM) market for decades, and is unknown to consumers. This acquisition marks iHealth’s serious entrance into the RPM market. iHealth will be leveraging eDevice’s connected solutions, especially gateway devices for transmission of vital sign data between provider and patient. Although iHealth has historically sold its devices in the RPM channel, the extended access to strategic distribution channels, through the eDevice acquisition, will open up to possibilities, and an increasing presence in the clinical arena.
In terms of financials, iHealth has agreed to pay approximately $106 million for the acquisition. It is still too early to say what success iHealth can expect, but the synergies definitely exist. The promise of RPM has not been realized for 20+ years, despite the potential, and far too many companies have made costly investments, including Care Innovations and Bosch Healthcare – the ladder announcing its divestment in 2015. Perhaps iHealth has the solution and at the right timing, as value-based care is on the to-do-list of every chief innovation officer in the provider space.
For questions or inquiries, please contact Roeen Roashan, Roeen.Roashan@ihsmarkit.com.