Best Buy Acquires Critical Signal Technologies to Expand Senior Home Care Portfolio

VCBeat (WeChat ID: vcbeat) has learned that on June 4, 2019, Best Buy announced the acquisition of remote monitoring services provider Critical Signal Technologies (hereinafter referred to as “CST”). Best Buy will leverage CST’s remote monitoring platform to drive the growth of its home healthcare business.

Currently, Best Buy has not disclosed the transaction amount or specific terms of the acquisition. It is reported that the deal was completed in the second quarter of 2019 (around May). Best Buy stated that the acquisition was funded using existing company cash and is not expected to have a material impact on its operating revenue for 2019.

Best Buy is the world’s largest retail group specializing in home appliances and consumer electronics. The Best Buy corporate group includes Best Buy Retail, Musicland Group, Future Shop Co., Magnolia Hi-Fi, Geek Squad Entertainment, Future Shop, and Five Star Appliance. Home healthcare is also one of Best Buy’s business segments. The company has developed a range of products, including medical alert systems and wearable devices. In April 2019, the company announced that it would sell the Tyto Care remote care platform through its online storefront and select physical stores.

CST was founded in 2006 by medical monitoring expert Jeffery S. Prough. Headquartered in Michigan, USA, it is a remote monitoring company dedicated to helping clients maintain safety and health at home. As the largest personal emergency response system (PERS) and remote monitoring service provider in the United States, the company serves over 100,000 seniors. CST’s products and services include Personal Emergency Response Systems (PERS), fitness coaching, on-call medical personnel, remote vital signs monitoring, chronic disease management, telemedicine, and premium hospitalization services.

In August 2018, Best Buy acquired GreatCall, a health services company, for $800 million. GreatCall has been dedicated to providing health and safety products and services for seniors, including mobile devices, mobile services, mobile applications, and wearable devices.

“Best Buy CFO and Chief Strategy Transformation Officer Corie Barry stated, ‘Best Buy intends to integrate CST’s remote monitoring services with GreatCall’s mobile devices and emergency call services to better serve the elderly. Additionally, the acquisition of CST will help develop Best Buy’s existing business and expand our remote care product offerings.’”

It is worth noting that CST also has a significant presence in the health insurance market. With substantial growth potential in this sector, Hubert Joly, CEO of Best Buy International, has explicitly stated that Best Buy is targeting the health insurance market and plans to acquire certain health insurance companies.

“Acquiring a health insurance company will provide us with the opportunity to collaborate with them and integrate our healthcare service offerings into their insurance plans, thereby helping insurers enhance user experience and reduce costs. The acquisition of CST will help us enter and penetrate the health insurance market,” said Hubert Joly.

(Compiled by Jiao Yanli)