In a move that highlights how Best Buy is aiming to be a home services company too, the retailer bought GreatCall for $800 million in cash. GreatCall provides connected health and emerging response services.
GreatCall, which targets the aging population, adds 900,000 paying customers and recurring revenue to Best Buy. GreatCall provides a range of services ranging from concierge to dispatching emergency personnel to connecting care givers. The company sells devices called Jitterbug and Lively as well as services.
Best Buy has laid out a 2020 strategy to diversify, offer more services and "enrich lives through technology by addressing key human needs."
Under its 2020 strategy, Best Buy has focused on health and wellness, smart home, services such as Geek Squad and experiences within its store.
Best Buy's omnichannel bets pay off as Q1 shines
Best Buy said GreatCall, which has annual revenue topping $300 million, will continue to be based in San Diego and under the leadership of CEO David Inns.
The purchase will be neutral to non-GAAP earnings in fiscal 2019 and 2020 and accretive in fiscal 2021.
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