Doro: Telecare acquisition in the UK - in line with the strategy2018-06-01 13:55, Edited at: 2018-06-01 15:15
Doro, yesterday night, announced a new acquisition of Welbeing (yes, it is pronounced with one l), within telecare in the UK, which we find very promising. Here we post a few initial reflections. For the details of the acquisition see the Doro press release.
UK is by far the largest telecare market in Europe but the transition to digital has barely started. However, this will change as BT will have closed down its analogue network by year 2025. Doro has solid experience from the digitizing of the pioneer Swedish telecare market.
The UK telecare market is very fragmented since many municipalities are running their own call centers, which is not economically sound and therefore provides good consolidation opportunities. This also means that no player has more than an 8-9 percent market share. Welbeing is number four or five on the market. Tunstall is smaller than that and is primarily focused on delivering hardware.
Overall, our first glance at Welbeing tells ut that it seems to be a company of good quality, with very happy customers, run by very experienced people. Most important though is that the acquisition will give Doro a solid platform to roll out Care services like SmartCare and Response.
We will return within short with an updated research report but we can already at this point in time say that we like the acquisition.
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