Best Buy is Buying GreatCall for $800M

Best Buy announced on Wednesday that it would be buying health services company GreatCall Inc. for $800 million in an all cash transaction.

San Diego-based GreatCall, a privately held company, offers health and safety products and services for older adults, including mobile devices, cellular service, mobile apps and a wearable device.

The company focuses on personal emergency response services for senior citizens and has over 900,000 paying subscribers according to Best Buy. The company employs about 1,000 workers, most of them in its two call centers.

“We know technology can improve the quality of life of the aging population and those who care for them,” said Hubert Joly, chairman and chief executive of Best Buy.

“Now, we have a great opportunity to serve the needs of these customers by combining GreatCall’s expertise with Best Buy’s unique merchandising, marketing, sales and services capabilities.”

David Inns, GreatCall CEO, will continue as chief executive. He stated, “GreatCall is already a growing, profitable business with annual revenue in excess of $300 million. By joining forces, we can do even more for this population, combining our products, services and expertise with Best Buy’s customer focus and scale to meaningfully expand our reach.”

The deal is subject to regulatory approvals and is expected to close by the end of October.

Disclaimer: We have no position in Best Buy Co Inc. (NYSE: BBY) and have not been compensated for this article.