Samsung Expands Into Healthcare with Xealth Acquisition

Samsung Electronics announced on July 8, 2025, its acquisition of Xealth, a Seattle-based digital health platform, marking a significant expansion into the healthcare sector. The financial terms of the deal were not disclosed.

Founded in 2017 as a spinout of the Providence health system, Xealth provides a platform that enables healthcare providers to prescribe and manage digital health tools. The system is currently utilized by more than 500 hospitals across the United States, including Advocate Health and Banner Health, and integrates with over 70 digital health solution partners.

Samsung's acquisition aims to integrate its wearable technology with Xealth's platform, creating a seamless connection between home health monitoring and clinical decision-making. This move aligns with Samsung's broader strategy to diversify its business portfolio beyond its traditional semiconductor and smartphone divisions, focusing on emerging sectors such as medical technology.

TM Roh, President and Acting Head of the Device eXperience (DX) Division at Samsung Electronics, stated, "We believe the acquisition of Xealth, with its accumulated expertise and extensive healthcare network, will be an anchor to accelerate Samsung’s efforts to support health systems and digital health partners through a truly connected care."

Mike McSherry, CEO of Xealth, commented, "Xealth and Samsung share a common goal to advance the digital health space for truly connected care. Customer health data from wearables can fill in context that is missing to hospitals and bring more data analysis possibilities that were not available just with clinical records."

The digital health sector has experienced significant growth, expanding from $150 billion in 2020 to an estimated $330 billion in 2025. This growth is driven by factors such as aging populations, increased adoption of telemedicine, and advancements in AI-enabled diagnostics. Samsung's entry into this space positions it to capture a portion of this expanding market and reduce reliance on the volatile semiconductor industry.

Competitors like Apple and Google have already established footholds in connected health through their respective health platforms and wearable devices. Samsung's acquisition of Xealth represents a strategic move to differentiate itself by offering a more integrated and comprehensive healthcare solution.

Despite the strategic merits, Samsung faces several challenges. Healthcare is a heavily regulated sector, and the success of this acquisition hinges on navigating U.S. and global regulatory approvals. Additionally, integrating Xealth's platform with Samsung's existing systems, while maintaining data privacy, will require significant effort. Competitors like Apple and Google have already established footholds in connected health, so Samsung must move swiftly to differentiate itself.

This acquisition follows Samsung's recent purchase of Germany's FlaktGroup for €1.5 billion to support data center cooling demands driven by AI development. Samsung Chairman Jay Y. Lee emphasized the company's goal of pursuing impactful acquisitions in 2025. However, the announcement comes amid investor concerns, as Samsung also projected a sharp 56% drop in its second-quarter operating profit due to underwhelming AI chip sales, highlighting ongoing challenges in its semiconductor segment.

Samsung's acquisition of Xealth marks a significant step in its strategic shift towards the healthcare sector. The integration of wearable technology with digital health platforms has the potential to transform patient care by providing more personalized and preventative solutions. However, Samsung must navigate regulatory challenges and a competitive landscape to realize the full potential of this acquisition.