Samsung to Buy U.S. Healthcare Company Xealth in Bid to Expand Digital Health

Samsung Electronics said Tuesday that it has signed a deal to buy Xealth, an American digital health platform, a move that represents a big push by the electronics giant to increase its mobile healthcare offerings.

Even though the South Korean conglomerate kept the deal's terms undisclosed, it highlighted the strategic significance of the acquisition. Samsung stated that the partnership seeks to develop strong synergy among its sophisticated wearable technology and Xealth's comprehensive digital health platform that links care providers—operating more than 500 hospitals in the U.S.—with patients through digital health initiatives and data management capabilities.

The acquisition highlights Samsung's wider bid to diversify away from its traditional core businesses of semiconductors and smartphones. Healthcare has been one of Samsung's identified key future growth drivers, along with consumer audio ventures, HVAC systems, and robotics.

Only two months prior, Samsung had been in the news having purchased Germany's FläktGroup for €1.5 billion ($1.68 billion) in a move aimed at expanding its capabilities in data center cooling solutions—most specifically those for supporting AI applications.

Samsung Chairman Jay Y. Lee indicated the company's desire to make "meaningful" acquisitions in 2025 to get back on track, particularly after trailing industry peers in the red-hot AI chip business dominated by Nvidia.

The acquisition news, though, comes on the heels of financial headwinds. Earlier Tuesday, Samsung estimated a steeper-than-forecasted 56% plunge in second-quarter operating profit due to weak sales of AI chips. The estimate has raised alarm among investors about whether the company can recover its semiconductor business.