Qualcomm (NASDAQ: QCOM) said its Qualcomm Life subsidiary has acquired Capsule Technologie, an Andover, MA-based healthtech systems company with more than 1,900 hospital customers in 38 countries. Financial terms of the deal were not disclosed.
Qualcomm bought Capsule from JMI Equity and Bulger Capital Partners, which together held a majority ownership stake in the company since 2012, according to Aaron Tilley in Forbes.
Capsule, founded in 1997, specializes in software tools that integrate medical devices with software systems used by hospitals and healthcare organizations. The company’s SmartLinx technology supports more than 730 medical devices—collecting medical device data from wherever a patient may be and transmitting it to any information system.
Qualcomm Life is in the same business, although it’s more focused on gathering data from outside of hospitals and clinics. Its core technology is a wireless gateway device that collects and encrypts data transmitted from patients’ medical devices and personal mobile devices, and enables healthcare providers to access the data in the cloud.
Qualcomm Life says it is creating one of the world’s largest open connected health ecosystems to deliver intelligent care by combining its wireless expertise and ecosystem of connected medical devices outside of the hospital with Capsule’s know-how in connecting medical devices, electronic medical records, and IT systems across the hospital enterprise.
Capsule has 212 employees and generated almost $61.4 million in revenue last year, according to a 2015 ranking of the 100 top healthcare informatics companies by the trade magazine Healthcare Informatics. A spokeswoman for Qualcomm Life said the wireless company would not disclose the number of employees at Capsule, or say how the two companies’ workforces will be combined.
Capsule will keep its name as a subsidiary of Qualcomm Life, Capsule CEO Gene Cattarina wrote in a blog post today. The resources of the new parent company will “support and facilitate the further development and evolution of our products and services,” Cattarina added.
Meanwhile, Qualcomm has been undergoing a strategic review of its businesses that it started in July, when the wireless technology giant said it planned to lay off 4,700 employees. The company has come under pressure from some investors to get its costs under control, and to consider selling its wireless chip business.