Virgin Pulse made a major move last week when it acquired two of its competitors, ShapeUp and Global Corporate Challenge. Starr Conspiracy Practice Leader Lance Haun has five thoughts on the acquisitions.
- This is big. Wellness doesn't have a true dominant player in the category like other areas of the HCM landscape. This is a direct play to be the leader in the category, and competitors should take this as a shot across their bow.
- Virgin Pulse already had one of the most complete wellness solutions in the market. Post-acquisition, other companies will have to play catch-up even more now.
- Virgin Pulse is understating the size of the overall engagement market by a significant margin. In our upcoming Brandscape on the engagement category, I think people will be surprised by the opportunity deals like this open up for companies like Virgin Pulse.
- I see continued consolidation in this category. Niche players will have to find a home under one of the bigger wellness technologies.
- If you're Virgin Pulse and you're worried about Fitbit coming into your category and dedicating a lot of resources to expanding its wellness stake, this is a nice move to show what a complete solution can look like.
What are your thoughts? Did Lance miss anything? Did he hit the nail on the head? Let us know in the comments.