Revealed: 'Substantial deal'
US firm swoops on Scots tech star Current Health
Chris McCann with colleague Stewart Whiting
Scottish medical technology company Current Health is being acquired by a listed US business for what is described as one of the biggest deals of its type in Europe.
Daily Business has learned that Best Buy, a technology retailer, is paying a “substantial sum” for the remote monitoring startup which has been one of the fastest growing healthcare businesses since its launch by a Dundee medical school undergraduate about five years ago.
The deal is expected to be another big pay day for early investors such as Edinburgh-based angel syndicate Par Equity which has invested in the business over six rounds.
Best Buy expects the deal to close by the end of the fiscal year, according to a filing with the US Securities and Exchange Commission.
Current Health’s technology allows health-care organisations to monitor patients at home.
It uses data from biosensors, such as wearable devices, to give a doctor insights into a person’s medical condition and to flag if he or she needs attention.
The company’s platform is used by many of the world’s leading health systems including Mount Sinai Health System, Geisinger Health, and the UK National Health Service, to monitor and manage patient care at home.
It is also used by major pharmaceutical companies, such as AstraZeneca, to move delivery of complex therapy into the home and support home-based drug trials.
CEO Chris McCann, who will remain with the business, said that Best Buy is a good fit because of its reach with stores and its trust with customers. He said it would be easier to provide a high-touch consumer experience at scale.
“Over the coming decade, significantly more healthcare can be delivered in the home,” he said.
In a recent blog, he wrote: “Speaking personally, I have never been more excited about Current Health and the future we are creating.”
In April this year Daily Business revealed that the company raised $43 million (£31m) in a Series B financing round led by US-based Northpond Ventures.
Top healthcare and pharmaceuticals venture capitalists, as well as a leading hospital system were among the investors.
The funding followed 3,000%+ growth in year-over-year revenue, making Current Health one of the fastest growing healthcare companies.
Best Buy has been building its health business, with a focus on consumer technology and support for seniors. With its acquisition of Current Health, the company is making a bet that demand for remote patient monitoring will continue to increase.