Samsung Electronics Expands Into Digital Healthcare with Acquisition of U.S.-Based Xealth

On Tuesday, South Korea’s Samsung Electronics Co. Ltd. (KRX: 005930) announced it has reached a deal to purchase Xealth, a U.S.-based provider of digital healthcare services. The company did not reveal how much it will pay for the acquisition.

Through this deal, Samsung intends to integrate its advanced wearable technologies with Xealth’s digital platform, which helps run remote health initiatives and links healthcare providers to their patients. Xealth currently collaborates with more than 500 hospitals across the United States, offering tools to manage patient data and deliver care remotely.

The deal reflects Samsung’s growing commitment to broadening its business focus amid headwinds in its core semiconductor segment. At its March shareholder meeting, Chairman Jay Y. Lee said the company was actively seeking “meaningful” acquisitions in 2024 to boost growth, following increased competition in AI chips from industry leaders like Nvidia (NASDAQ: NVDA).

This purchase follows Samsung’s recent 1.5 billion euro ($1.68 billion) acquisition of Germany’s FlaktGroup in May 2024, expanding its reach in data center cooling solutions — a sector gaining importance as AI workloads surge worldwide.

Despite its diversification efforts, Samsung faces challenges in its chip business. Earlier on Tuesday, the company projected a 56% drop in second-quarter operating profit, significantly worse than analysts expected, largely due to weaker AI chip sales.

Samsung’s latest moves signal a strategy to leverage its consumer tech strengths, such as advanced wearables, to capture new opportunities in healthcare and adjacent sectors, including robotics, consumer audio, and climate systems.