In a significant development for digital healthcare, Samsung has completed its acquisition of Seattle-based startup Xealth for approximately $115 million. The deal represents a major step in Samsung’s expanding digital health initiatives as it competes with other tech giants in the healthcare space.
Xealth, founded in 2017 as a spinoff from Providence Health & Services, has developed a platform that enables healthcare providers to prescribe and manage digital health tools through electronic medical records systems. The company’s services have evolved to include transportation and meal delivery options.
Mike McSherry, Xealth’s CEO and co-founder, will continue leading the company, which currently employs 55 people in Seattle. Under Samsung’s ownership, there are plans to triple the team’s size while maintaining the Xealth brand identity.
The acquisition aligns with Samsung’s broader healthcare strategy, leveraging its extensive user base of smartphone owners and growing collection of health-focused devices including smartwatches and health rings. McSherry envisions this integration leading to a “doctor in your pocket” concept, where devices can proactively suggest medical appointments or health interventions.
Since its inception, Xealth has established partnerships with 15 hospital systems and attracted strategic investments from major healthcare players including Novartis, Philips, ResMed, and Samsung. These relationships helped the company gain credibility in an industry traditionally resistant to technological change.
McSherry, who previously co-founded Swype (sold to Nuance for $100 million in 2011), acknowledges the challenges in healthcare technology adoption, particularly regarding reimbursement structures that favor treatment over prevention. He notes that current healthcare economics can impede the implementation of digital solutions, despite advances in AI and connected device capabilities.
As part of Samsung, Xealth will help develop the company’s health app store, focusing on curating digital health solutions for consumers. Samsung’s position as a leading home appliance manufacturer also presents opportunities to integrate health monitoring into domestic environments, from fall detection to wellness routine promotion.
The company’s total funding exceeded $50 million before the
acquisition. McSherry co-founded Xealth with Aaron Sheedy, his former colleague from Swype, which had also received Samsung investment. Looking ahead, McSherry believes Samsung’s brand power, marketing capabilities, and global reach will help fulfill Xealth’s original vision of creating a truly global platform for digital health services.
The acquisition comes as Samsung pursues FDA approvals for various health monitoring features, including AFib and sleep-apnea detection, demonstrating its commitment to expanding its healthcare capabilities and competing with other tech giants in the digital health space.