Samsung Acquires Digital Health Platform Xealth to Integrate Wearable Data into Clinical Care
Samsung is bolstering its healthcare ambitions with the acquisition of Xealth, a digital health company specializing in the management and integration of digital tools for healthcare providers. The deal, announced Tuesday, aims to unify fragmented health information and seamlessly incorporate data from Samsung’s Galaxy Watch and other wearables into standard clinical workflows.
Bridging the Gap Between Consumer Wellness and Clinical Settings
The acquisition of Xealth is a strategic move for Samsung, signaling a deeper commitment to the evolving landscape of digital healthcare. Xealth’s platform allows providers to access and manage a wide range of digital health products directly through existing electronic health records (EHRs), streamlining remote patient monitoring and improving care coordination.
Founded in 2017 as a spin-off from Washington-based Providence health system, Xealth currently partners with over 500 U.S. hospitals – including Advocate Health, Banner Health, and the Cleveland Clinic – and more than 70 digital health firms. This extensive network positions Samsung to rapidly expand its reach within the healthcare ecosystem.
Wearable Data as a Clinical Asset
According to a company release, the integration of Xealth’s platform will enable easier sharing of data collected from consumer wellness devices with healthcare professionals. “Customer health data from wearables can fill in context that is missing to hospitals and bring more data analysis possibilities that were not available just with clinical records,” stated Mike McSherry, Xealth CEO. “Together with Samsung and our network of healthcare leaders, we will design a bridge between home health monitoring and clinical decision-making, with provider workflow considerations and patient engagement at the core of that effort.”
Samsung’s Galaxy Watch already has Food and Drug Administration (FDA) clearance for detecting irregular heart rhythms and signs of sleep apnea, demonstrating the company’s existing foothold in healthcare technology. Earlier this summer, Samsung announced plans to develop a data hub to facilitate the secure sharing of health information between users and their physicians.
A Rising Tide of Digital Health M&A
The Xealth acquisition comes at a time of increasing activity in the digital health sector. After a period of limited initial public offerings (IPOs), exit opportunities for digital health companies are becoming more prevalent. Recent IPOs from firms like Hinge Health and Omada Health have signaled renewed investor confidence.
However, mergers and acquisitions (M&A) remain the dominant exit strategy. A recent report from venture capital firm and consultancy Rock Health indicates a significant increase in M&A activity, tracking 107 digital health deals in the first half of the year – a pace that is expected to surpass the 121 transactions recorded in 2024.
Financial terms of the Samsung-Xealth deal were not disclosed, and the acquisition is expected to be finalized later this year.
