Stryker to Acquire AI-based Healthcare Startup Care.ai

Stryker views the acquisition as a strategic enhancement to its growing health IT offerings.

US-based medical device giant Stryker has signed a definitive agreement to acquire Care.ai, a Florida-based startup specializing in AI-driven solutions for hospitals.

Care.ai offers a suite of AI-based technologies, including virtual care, patient monitoring, and smart care facility platforms.

One of its key innovations, the Always-Aware Ambient Sensors, monitors hospital rooms and patients to prevent falls and pressure injuries, with alerts sent directly to the care team's smartphones.

Strategic Addition to Stryker’s Portfolio

Late last month, CEO Kevin Lobo announced Stryker's plans to pursue several M&A deals in the latter half of this year. The company has quickly begun to deliver on that promise.

However, the financial terms of the acquisition were not disclosed, and the transaction is subject to customary closing conditions.

Stryker views the acquisition as a strategic enhancement to its growing health IT offerings. The company has been expanding its portfolio of wirelessly connected medical devices.

Care.ai’s technology is expected to integrate seamlessly with Stryker’s existing platforms, including the Vocera Communications system, which Stryker acquired in a $3 billion deal in January 2022.

Continued M&A Activity

Stryker has been very active in mergers and acquisitions this year. In addition to Care.ai, the company recently acquired Artelon, a soft tissue fixation company specializing in foot, ankle, and sports medicine procedures, and MOLLI Surgical, a breast cancer care company.

Earlier this year, Stryker finalized acquisitions of Serf SAS, a French joint replacement hardware manufacturer, and mfPHD, a Texas-based developer of modular stainless steel wall systems for hospitals.

Stryker CEO Kevin Lobo hinted at a “very active deal pipeline” for the second half of the year, signaling continued expansion in the company’s capabilities and market reach.

“care.ai will help Stryker significantly accelerate our healthcare IT and digital vision to provide customers with real-time, smart, and connected decision-making tools that enhance the lives of caregivers and their patients,” Andy Pierce, president of Stryker’s medical surgical and neurotechnology group, said in a statement.

Just days back, Stryker also unveiled its MultiGen 2 Radiofrequency (RF) Generator, designed to improve the management of chronic pain, particularly for facet joint pain, a common source of persistent back pain.

The MultiGen 2 RF Generator offers enhanced efficiency, control, and reliability for RF ablation procedures. This minimally invasive technique has been shown in clinical studies to provide substantial relief from pain for up to a year in many patients.