Samsung deepens health care with the acquisition of Xealth

The world’s technology giants continue to continue strategic acquisitions aimed at deepening their presence in the world of health care. On Tuesday, Samsung announced its intention to acquire Xealth, a digital health startup came out of Providence eight years ago.

The agreement marks the second major acquisition of the health of the Korean technology giant in less than a year, because Samsung bought Sonio from French prenatal ultrasound in an agreement of $ 92 million which concluded in August. The financial details of the acquisition of Xealth have not been disclosed.

Samsung has developed a series of products in recent years to monitor health at home, such as portable devices and ambient sensors. The company also wishes to transform its devices such as phones, televisions and other household appliances into a base for ambient health surveillance at home in the next two decades.

To act on this vision, Samsung needs integration into clinical workflows, hence the acquisition of Xealth.

Xealth, based in Seattle, works with health systems to help them integrate digital tools in supplier workflows. The company combines various tools from different suppliers in a single platform, which gives suppliers a more precise view of the health of their patients. Its customer network extends over more than 500 hospitals across the country, such as Providence, UPMC, Masse General Brigham, Advocate Health and Banner Health.

The CEO of Xealth, Mike Mcsherry, said that the agreement had been concluded because his business had reached the growth ceiling typical of a digital health startup, so if it wanted to evolve more, this should be done by an acquisition or an IPO.

“Timing worked perfectly with Samsung’s suction to deepen clinical workflows with their devices and the resulting data from some of these devices. Looking around industry, we found ourselves to be the perfect partner for them,” he said. “Samsung has recognized that the health care market is distinct and that they did not necessarily have the expertise on how to work with hospital systems.”

The agreement is always subject to regulatory examinations – but if it happens, Xealth will be a subsidiary in exclusive property of Samsung Electronics. Mcsherry will remain CEO, and the rest of the management team will also keep their positions, he said.

This acquisition comes at a time when digital health startup outings become more and more optimistic.

The first half of 2025 contained the long -awaited IPOs of Hinge Health and Omada Health, two outings that many felt suffering after years of stagnation. There have also been many digital health startups that have left mergers and acquisitions this year, with more than 100 offers in the last six months – which puts the pace from the year to almost double the total of 2024.

MCSHERRY attributes the momentum of the industry largely to the rapid pace to which providers have adopted new technologies in recent years.

“Providers play an important role in adopting and deploying and distributing digital health solutions. It was largely payers and employers who were the first adopters. We note an increase in interest in the number of different digital solutions that our supplier customers wish to deploy in their patient populations, ”said MCSHERRY.

Providers now carrying out the burden of digital adoption, the bet of Samsung on Xealth can prove to be wise.

Photo: Designer491, Getty Images