Doro Acquires UK Telecare Company Welbeing
Doro has acquired UK-based telecare company Welbeing for approximately 130 million SEK to expand its telecare business and strengthen service revenues.
Swedish technology firm Doro, which focuses on solutions for seniors, has acquired Welbeing, a UK-based telecare company, for approximately 130 million SEK. The acquisition is intended to expand Doro's telecare operations and bolster its revenue streams from services and platforms.
This move strengthens Doro's position in the UK market, recognized as Europe's largest for telecare services. Current penetration among seniors in the UK is 13%, significantly higher than the European average of 5%. The market is undergoing a transition from analog to digital systems, accelerated by BT's planned shutdown of its analog network by 2025.
Welbeing serves approximately 75,000 connections, with 21,000 being private customers. The company reported revenues of £7.6 million for the fiscal year ending September 2017. The acquisition is expected to enhance Doro's capabilities in digital solutions and its role as a comprehensive service provider for the elderly.
The initial payment for the acquisition is around 130 million SEK, comprising 85% in cash and 15% in newly issued Doro AB shares. Potential additional payments are contingent on Welbeing's EBITDA exceeding projections for the 2017-2018 fiscal year. The acquisition will be consolidated into Doro Group starting June 2018.