Finnish firm Nokia announced that it will buy digital health firm Withings for 1.2 billion yuan ($191 million) in cash to concentrate on its digital health business venture.

The acquisition, which is anticipated to close in the third quarter the year, will enhance Nokia's business unit for wearables and fitness devices. The initiative is one of Nokia's strategies to reinvent itself after it sold its smartphone business to Microsoft for more than 45 billion yuan ($7 billion) two years ago and to lead "the next wave of innovation in digital health," Ramzi Haidamus, Nokia Technologies president, said.

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"We have said consistently that digital health was an area of strategic interest to Nokia, and we are now taking concrete action to tap the opportunity in this large and important market," Rajeev Suri, Nokia's CEO and President, said during a press launch.

During an interview at the Mobile World Congress, Suri said Nokia is taking its time to develop a smartphone concept with chances of introducing a new device to be launched in 2016.

"With this acquisition, Nokia is strengthening its position in the Internet of Things in a way that leverages the power of our trusted brand," he said.

"We're excited to join Nokia to help bring our vision of connected health to more people around the world," Withings Founder Cedric Hutchings said.

Withings, which was established in 2008, has 200 employees across different countries including France, Hong Kong, the US, and the UK. It also offers a wide range of products including fitness tracker, Bluetooth thermometer, Activite smartwatch, smart camera, bed sensor, among others.

TagsNokia, Withings, wearables