Best Buy Inc. said Wednesday that it will spend $800 million to purchase GreatCall Inc., one of the nation's largest providers of emergency response technology for older adults.
It is the first acquisition for the retailer since Hubert Joly became CEO in 2012 and moves the company squarely into the aging and health services space.
GreatCall, based in San Diego, currently has 900,000 subscribers to its service, which uses mobile technology to connect older adults with family members as well as with trained call center operators who can answer questions or call emergency personnel if necessary.
A Best Buy spokesman said Joly and other officials would not be available to comment. In a statement, Joly acknowledged the role technology can play in an aging population, and in supporting family caregivers.
"Now, we have a great opportunity to serve the needs of these customers by combining GreatCall's expertise with Best Buy's unique merchandising, marketing, sales and services capabilities," he said.
Founded in 2006, GreatCall has annual revenue of more than $300 million, according to a company news release, and is profitable. The company's CEO, David Inns, will remain in that position, and the company headquarters will remain in California.
The cash deal is expected to close by Nov. 3, the end of its Best Buy's fiscal 2019 third quarter. Best Buy said it expects the acquisition to start contributing to its overall earnings by fiscal 2021.
The purchase complements a similar Best Buy service called "Assured Living," now available in 21 cities, that incorporates motion sensors and other monitoring technologies to try to prevent health crises and help older adults live independently.
