Sleep Number has upped its 18% stake in BAM Labs to full ownership, acquiring the San Jose, California-based company for approximately $58 million, using cash on hand. BAM is the provider of the Minneapolis-based airbed manufacturer’s SleepIQ technology. The technology provider was founded by Rich Rifredi and Steve Young in 2006, and also is a player in the growing medical smart-bed market with its Touch-free Life Care sensor.
In 2012, the two companies partnered to develop and commercialize SleepIQ technology, launching it nationwide in the United States in June 2014.
Sleep Number said the acquisition will allow it to keep pace with today’s digitally connected consumers who are rapidly adopting new tools to track and improve health and wellness.
The purchase will have a positive impact on earnings per share within two years, and is not expected to dilute 2015 full-year earnings, according to a Sleep Number news release. The company also announced it has increased financial flexibility with a new $100 million credit facility provided by KeyBank and BMO Harris.