Masimo has signed an agreement with NantHealth Inc to acquire the latter’s connected care assets for $47.25 million, cash.

NantHealth’s connected care solutions provide medical device interoperability to hospitals and health systems. The portfolio includes:

  • DCX device connectivity (formerly known as DeviceConX),
  • VCX patient vitals software (formerly known as VitalsConX),
  • HBox connectivity hub, and
  • Shuttle interface cable.

The acquisition supports Masimo’s goal to help hospitals improve the continuum of great care through hospital automation, connectivity, and innovative noninvasive monitoring technologies, the company said in a news announcement.

“One of the strategic priorities for Masimo is, through our hospital automation solutions, to reduce clinician cognitive overload and reduce errors of omission. Through connectivity, predictive algorithms, and decision support, we hope to improve the continuum of great care. The connectivity assets we are acquiring are completely in line with our mission as they will help accelerate our internal growth initiatives in this area,” said Joe Kiani, Founder, Chairman, and CEO of Masimo. “Not only does Connected Care immediately increase our customer footprint but also provides us with products which complement our current portfolio. As a result, we are very excited to welcome Connected Care’s talented team to Masimo and look forward to realizing our vision together.”

The transaction is expected to close in the first quarter of 2020, subject to customary closing conditions, according to Masimo, which expects to fund the acquisition with existing cash on hand.