Tech giant Samsung continues its strategic expansion into the healthcare sector with its latest acquisition of Xealth, a Seattle-based digital health startup. Xealth, spun out of Providence eight years ago, specializes in integrating digital health tools into clinical workflows for healthcare providers. The acquisition, Samsung’s second major health deal in under a year following its $92 million purchase of French prenatal ultrasound startup Sonio in August, underscores the company’s commitment to enhancing its presence in the healthcare technology market.
Samsung has been developing a range of health-monitoring products, including wearables and ambient sensors, with the long-term vision of transforming its devices – such as smartphones, TVs, and other appliances – into a comprehensive platform for ambient home health monitoring. The integration of Xealth’s technology is crucial for Samsung to achieve this vision by connecting its devices to clinical workflows.
Xealth’s platform allows healthcare providers to combine various digital tools from different vendors into a single, unified system, offering a more accurate and comprehensive view of patient health. The company’s extensive customer network includes over 500 hospitals across the United States, such as Providence, UPMC, Mass General Brigham, Advocate Health, and Banner Health.
According to Xealth CEO Mike McSherry, the acquisition was motivated by the company’s need to scale beyond its current growth ceiling. “The timing worked out perfectly with Samsung’s aspiration to get deeper into clinical workflows with their devices and the data stemming from some of those devices,” McSherry explained. Samsung recognized the distinct nature of the healthcare market and the need for expertise in working with hospital systems, making Xealth the perfect partner.
While the deal is subject to regulatory reviews, upon completion, Xealth will become a wholly owned subsidiary of Samsung Electronics, with McSherry remaining as CEO and the current executive team retaining their positions. This acquisition comes at a time when the digital health startup exit landscape is showing signs of optimism, with notable IPOs such as Hinge Health and Omada Health in the first half of 2025, and over 100 M&A deals in the past six months.
The momentum in digital health is largely attributed to the rapid adoption of new technologies by healthcare providers in recent years. McSherry noted, “Providers are playing a strong role in adopting and deploying and distributing digital health solutions.” With providers now at the forefront of digital adoption, Samsung’s acquisition of Xealth appears to be a strategic move to capitalize on this trend.
