Qualcomm Exits Healthcare Sector with Sale of Qualcomm Life to Francisco Partners Amid $4.9B Loss

VCBeat (WeChat ID: vcbeat) has learned that Qualcomm recently sold its subsidiary, Qualcomm Life, to the private equity firm Francisco Partners. Qualcomm Life is a telehealth company dedicated to providing customers with medical device connectivity and data management services. Following the acquisition, the company will operate independently and be renamed Capsule Tech.

Qualcomm stated in a press release, “To concentrate our capital and efforts on our core business, we have decided to sell Capsule Tech.” The divestiture of Capsule Tech marks Qualcomm’s exit from the healthcare sector. In recent years, Qualcomm has faced challenging circumstances, with its revenue declining for three consecutive years—dropping by 5%, 7%, and 5% year over year in fiscal years 2015 through 2017, respectively. Financial reports for 2018 revealed that Qualcomm incurred a loss of $4.9 billion, prompting the company to implement large-scale layoffs to cut costs.

Qualcomm did not disclose any financial details regarding the acquisition. Capsule Tech stated that it would continue to operate its two major platforms: Capsule (a platform providing medical device connectivity solutions for hospitals) and 2net (a medical-grade mobile connectivity platform).

In 2011, Qualcomm established Capsule Tech (formerly known as Qualcomm Life) to expand its business in the healthcare sector. Capsule Tech operates multiple intelligent care platforms that connect all medical devices and clinical management systems, delivering personalized and precise care solutions to customers. Currently, these intelligent care platforms under Capsule Tech are integrated into the clinical information systems of more than 2,000 hospitals across 40 countries.

Duane Nelles, Vice President of Qualcomm Incorporated, stated, “Francisco Partners has extensive experience in medical technology. We believe that the firm will enable Capsule Tech’s employees to achieve significant breakthroughs in the medtech sector, delivering market-leading products and services to customers worldwide.”

Chris Adams, a partner at Francisco Partners, stated, “CapsuleTech is a key enabler of digital healthcare. Since its inception, the company has gradually earned the trust of clinicians, IT administrators, and medical device manufacturers. With the advancement of digital healthcare, CapsuleTech is poised for broad growth prospects.”

Qualcomm, founded in 1985 and headquartered in California, USA, is a research and development company specializing in wireless communication technologies, as well as a global leader in the R&D of 3G, 4G, and 5G technologies. The company has been listed on Fortune’s “Fortune 500” for 12 consecutive years and has been recognized by Fortune as one of the “100 Best Companies to Work For” in the United States for 16 consecutive years.

Francisco Partners, established in 1999 and headquartered in California, USA, is a private equity firm specializing in technology investments, with over $10 billion in assets under management. To date, the firm has invested in more than 50 technology companies.

(Compiled by Jiao Yanli)