Remote care company Connect America is looking to the senior care space with its acquisition of Royal Philips' Aging and Caregiving (ACG) business for an undisclosed sum.

The new acquisition will include the Philips Lifeline Personal Emergency Response system (PERs), which lets seniors access care and connect to a trained specialist 24/7. The ACG business includes a basic product where a senior can press a button for help, a wearable that can detect falls and a medication dispensing service device.

The business also includes a digital platform for caregivers to connect and coordinate medical care for a senior.

Connect America, which is owned by PE company Rockbridge Growth Equity, already has several products focused on remote and virtual care. Its service also includes a personal emergency response tool, remote monitoring products and a medication management platform. The joint company will have over 1,500 employees and 900,000 subscribers.

WHY IT MATTERS

The American population is aging. The U.S. Census Bureau predicts that by 2034 adults over 65 will outnumber children under the age of 18.

According to a Rock Health report, the bulk of seniors would like to age in place. In fact, the research found that 77% of people over the age of 55 reported wanting to age in place, however, only 50% believe they will. Some of the biggest barriers to aging in place included home maintenance, lack of transportation and mobility, inadequate preparation and age-related accessibility.

However, today entrepreneurs and innovators are looking to use tech to help facilitate a better aging process.

“I believe personally that the aging of a population is more of an opportunity than a problem for societies," Finland’s former prime minister, Esko Aho, said during a HIMSS panel last year. "I very much like the phrase 'Silver is the next green,' which means we have to have a similar comprehensive approach to understand this is fundamental systemic change.”

THE LARGER TREND

Royal Philips has been interested in the aging space for some time. In 2019 the company unveiled its app that links the company's senior care products into a single digital ecosystem for family caretakers.

But Connect America and Philips aren't the only companies working on senior tech. In March retail giant Best Buy announced that it brought senior-focused emergency-response services to Apple Watch through its Lively brand.

Amazon has also begun to innovate in the senior space. In 2020 the company rolled out a new feature for its Alexa that helps users check on aging family members remotely.  

ON THE RECORD

"Bringing together Connect America and Philips ACG, two healthcare leaders that are both focused on a compassionate strategy when it comes to providing products and services for the senior population is monumental," Janet Dillione, CEO of Connect America, said in a statement. "Our capabilities complement each other well, which will only improve the experience for both our healthcare partners and end-users."