Nokia is in early negotiations with Withings co-founder Eric Carreel to sell back the digital health business it bought from the French company for $191 million in 2016 to instead focus on "becoming a business-to-business and licensing company," Nokia told Engadget.
Nokia recently wrote off $175 million in goodwill on its wearable business and began a strategic review. A leaked internal memo later revealed company officials did not see a future in the digital health business.
It acquired Withings in an attempt to break into the consumer digital health market and compete with Apple's HealthKit with the idea of collecting users' health data — such as heart rate, blood pressure and weight — to use in its medical business, WellCare. Nokia's digital health business includes activity trackers, smartwatches, smart scales and other mobile apps produced by Withings. Although Nokia rebranded all the products after the purchase, Withings was primarily in charge of running the business.
A deal isn't yet finalized, but the sale is expected to conclude late in the second quarter. Nokia said nearly 425 people may be laid off, but prior to its acquisition, Withings had about 200 employees.
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