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Best Buy to buy health services company GreatCall for $800 million

Reuters logo Reuters 8/15/2018 By Nandita Bose and Tamara Mathias

Best Buy Co Inc said on Wednesday it would buy health services provider GreatCall Inc for $800 million in cash, its largest acquisition ever, as it focuses on selling products and services to an aging U.S. population.

The No. 1 U.S. consumer electronics retailer currently sells health and wellness-related products.

Privately held GreatCall, with annual revenue of $300 million, focuses on personal emergency response services for senior citizens, offers mobile products and connected devices and has over 900,000 paying subscribers, Best Buy said.

The acquisition offers Best Buy an opportunity to combine GreatCall's offerings with its merchandising, marketing, sales and services capabilities, the retailer's Chief Executive Hubert Joly said in a statement.

The health space is a large, growing market in which technology can address the needs of aging consumers, their caregivers and payers. There are approximately 50 million Americans over age 65, a number that is expected to increase by more than 50 percent within the next 20 years, Best Buy said.

The transaction is likely to close by end of the third quarter of fiscal 2019, subject to regulatory approvals.

Best Buy said it expects the impact of the acquisition on its non-GAAP earnings to be neutral in fiscal 2019 and fiscal 2020 and accretive to earnings by fiscal 2021.

(Reporting by Nandita Bose in New York and Tamara Mathias in Bengaluru; Editing by Sriraj Kalluvila and Dan Grebler)

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