Best Buy Acquires GreatCall, Creates a Niche in Health Space
Best Buy Co., Inc. BBY has inked a deal to acquire GreatCall for $800 million in cash. The deal, which is touted to be the company’s largest ever, is anticipated to close by the end of third-quarter fiscal 2019. This will boost the company’s adjusted earnings in fiscal 2021, with no impact on fiscal 2019 and 2020. With an annual sale of $300 million, GreatCall provides connected health and personal emergency response services to the aging population at a low cost.
Post the deal, GreatCall is said to operate separately and its easy-to-use mobile products and connected devices will become a part of Best Buy’s new Assured Living unit, per media reports. This unit will offer networked products such as smart doorbells and bed sensors, which will be available in 21 markets, to help supervise the health and safety of the aging population in the United States. According to the company, the aging population in the United States is expanding fast and projected to rise by more than 50% in the next 20 years.
Further, this buyout is in sync with Best Buy’s 2020 strategy and focuses on meeting increasing needs of the aging population through technology products, services and solutions. Also, the deal will help the company expand in the health space and develop more solutions for customers.
We note that this Zacks Rank #2 (Buy) stock has surged 29.3% so far in the year, outperforming the industry’s growth of 22.2%
3 Other Retail Stocks to Steal the Show
Ruth’s Hospitality Group RUTH has a long-term earnings growth rate of 14.3% and sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kohl’s Corporation KSS has a long-term earnings growth rate of 6.7% and sports a Zacks Rank #2.
The Michael’s Companies MIK has a long-term earnings growth rate of 7.7% and sports a Zacks Rank #2.
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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
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