(Bloomberg) -- Finnish wearable-technology maker Oura Health Oy is acquiring a little-known tech startup, Proxy Inc., which makes digital identification tools, the company plans to announce Tuesday.
The all-equity deal valued Proxy at $165 million, according to a person familiar with the matter. The startup was last valued at $292 million in 2020, according to PitchBook.
San Francisco-based Proxy has been working in stealth mode on biometric systems that work with smartphones and wearables. Its digital identity signal technology, which is stored on and emitted from mobile devices, is intended to replace keys, cards, badges or other apps.
Oura makes a ring that tracks wearers’ sleep, heart rate, body temperature and other health data.
The deal could give Oura the ability to integrate payments and new layers of security and authentication into its devices, the company said.
Oura has raised more than $350 million from investors and was last valued at $2.55 billion in April 2022. Oura hired a new chief executive officer last year in advance of an eventual initial public offering.
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