Inside information: Nightingale Health strengthens its Japan business by acquiring Welltus Inc
Company release, Inside information
7 March 2024 at 9:00 a.m. (EET)
Nightingale Health, a pioneer in health risk detection and preventative health, has signed a share purchase agreement to acquire all shares of Welltus Inc from Mitsui & Co., Ltd., (“Mitsui”) and Kirin Holdings Company, Limited (“Kirin”). This transaction, subject to customary terms, is expected to close on 29 March 2024.
This acquisition is aligned with the updated business strategy of the sellers who have been Nightingale Health’s collaborative partners since 2020. Their contributions have been pivotal in integrating Nightingale Health’s blood analysis technology into the Japanese healthcare system and establishing a broad distribution network across approximately 200 hospitals. Leveraging the achievements in Japan over the past years and Nightingale Health’s other successful global ventures, such as those in Finland and Singapore, the company is well-positioned to oversee the Japanese operations.
The acquisition will conclude the exclusivity agreement with Mitsui and Kirin, granting Nightingale Health complete control over commercial activities in Japan. This transition allows Nightingale Health to capitalize on the established distribution network and explore additional partnerships. Moreover, the new business structure will be less complex, meaning Nightingale Health’s revenue share from selling services will increase as fewer parties will be involved in the distribution chain.
“The most challenging part of entering the Japanese market was gaining the medical community’s acceptance and building the country-wide distribution network together with the local diagnostic company partners. With the medical community's acceptance secured, broad distribution network established and complete control over Welltus Inc attained, we are in a strong position to expand our business in Japan and leverage the unique competitive advantages of our global offering”, says Teemu Suna, CEO and Founder of Nightingale Health.
The transaction brings an immediate minor positive impact to Nightingale Health’s annual revenue, with significant growth opportunities in the long term. The acquisition will not lead to a notable increase in short-term costs, and future investments will be aligned with business growth. Welltus Inc, established in 2021, was initially set up to provide services utilizing Nightingale Health’s proprietary blood analysis technology. The acquisition price is net cash of Welltus Inc.
For further information, please contact:
Teemu Suna, CEO
ir@nightingalehealth.com
Certified advisor:
Oaklins Merasco Ltd, tel. +358 9 6129 670
About Nightingale Health
Nightingale Health is The Preventative Health Company. Staying healthy is one of the top priorities in human life. Our health has a profound impact on our quality of life, and it’s also strongly connected to the lives of those close to us. Nightingale Health enables prevention by combining the power of our in-house developed, advanced blood analysis technology with unprecedented access to global health repositories and world-leading medical research. With this combination, we go beyond the traditional healthcare and wellbeing tools: We provide the scientific connection to multiple health and disease outcomes and the ability to predict future healthy years.
Nightingale Health operates globally with a parent company in Finland and seven subsidiaries in countries such as Japan, the United States, Singapore, and the United Kingdom. Nightingale Health has customers in more than 34 countries in the healthcare and medical research sectors. The company’s technology is being used in many of the world’s leading health initiatives, such as the UK Biobank, and over 600 peer-reviewed publications validate the technology. The company’s Series B shares are listed on the First North Growth Market Finland marketplace. Read more: https://nightingalehealth.com
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