- This past week, Walmart Inc (NYSE: WMT) confirmed it acquired certain assets of CareZone and revealed a large stake in Dada Nexus Ltd (NASDAQ: DADA)
This past week, there has been some major Walmart Inc (NYSE: WMT) news. The company confirmed that it acquired certain assets of CareZone. And a regulatory filing confirmed that the retail giant owns nearly 95 million shares of China-based logistics company Dada Nexus Ltd (NASDAQ: DADA), according to Fool.com.
Dada Nexus Stake
The stake that Walmart holds in Dada is about 10.7% and it is worth more than $2 billion. Walmart first started investing in Dada Nexus back in 2016. And the companies have a strategic partnership in China. Dada Nexus offers delivery services for goods that Walmart sells in China. And 15% of Dada Nexus’ total net revenue is based on its partnership with Walmart.
Another major deal that Walmart did overseas in recent years involves India-based Flipkart. Walmart had acquired a $16 billion stake in Flipkart Online Services Pvt. In 2018. And with that investment, Walmart also gained a stake in its rapidly growing digital payments subsidiary PhonePe Pvt Ltd. Walmart reportedly outbid Amazon for the stake in Flipkart.
Dada Nexus went public earlier this month. The company raised $336 million upon selling 21 million depository shares at $16 each. The stock price hit a high of $23.96 today and closed at $22.12.
The company was formed through a merger of JD Daojia (a platform created by JD.com for ordering groceries online) and Dada (delivery crowdsourcing service).
Acquisition Of CareZone’s Technology
Walmart recently acquired the technology and intellectual property of CareZone. Walmart had confirmed the deal with CNBC and it was reportedly valued at about $200 million. As part of the deal, Walmart is also absorbing CareZone’s product and engineering teams.
What does Care Zone do? CareZone developed an app that helps people manage medications. Plus CareZone also developed technology for users to scan their health insurance cards and prescription drug labels in order to see what is covered by their plans or to set up home deliveries.
“The goal of any technology startup is to build a product or experience that touches the lives of as many people as possible,” explained Walter Smith, co-founder and chief technology officer of CareZone. “Adding our technology platform to Walmart’s existing digital capabilities and physical reach creates a unique opportunity to redefine what the future of digital health and wellness can look like. The CareZone team members joining Walmart are excited to bring our knowledge and apply it to such a broad canvas.”
Walmart opted out of buying the CareZone pharmacy unit — which organizes medications into pill packs and delivers it to patients through the mail.
Lori Flees, Senior Vice President of Health & Wellness at Sam’s Club and Sean Slovenski, Senior Vice President of Health & Wellness at Walmart U.S. cited a survey of U.S. customers conducted by the company’s consumer insights team that said cost is the top barrier to healthcare for 43% of Walmart shoppers, followed by convenience (27%) and access (22%). Plus 40% of those surveyed have delayed medical care.
“This is why Walmart is focused on delivering innovative solutions to increase access to affordable and convenient healthcare across our business. It’s why we introduced our groundbreaking $4 prescription program years ago, and it’s why we recently launched Walmart Health in Georgia to offer key healthcare services at affordable prices,” wrote Flees and Slovenski in a company blog post.
