Technology acquisition proves how two companies can benefit one another
As consumers become more reliant on technology, it only makes sense that businesses will continue to work hard to meet those needs. Sometimes, the answer to keep offering the latest innovations to customers will involve one company acquiring another. However, this is a chance for each firm to become stronger and remain ahead of their competition.
That is what happened when Jawbone, a company that creates Bluetooth mobile headsets, bought BodyMedia. The firms announced the acquisition this week, and while a set number was not released, All Things D reported that it could be close to $100 million.
BodyMedia creates wearable body monitors, and according to PC Magazine, has 87 patents, including one of the world's largest databases of raw and real-world human sensor data.
The technology acquisition is expected to help Jawbone become a stronger force in the wearable health and fitness market.
According to Jawbone CEO Hosain Rahman, consumers have a large appetite for personal data. That need for self-discovery is likely to grow, he said in a press release, adding that between his company and BodyMedia there are 30 years worth of experience in deep tech, science and intellectual property.
"Jawbone's deep expertise with consumer technology, design, and building products that fit seamlessly into people's lives is the best way to carry forward many of the innovations that BodyMedia has developed," BodyMedia CEO Christine Robins said in a statement.
M&A activity is not about a smaller company disappearing. Rather, it is an opportunity for firms to keep pace with evolving technologies while still providing customers with the best products or services possible.