Select Comfort Corp. said Thursday it is acquiring BAM Labs, developer of a smart-bed technology that has lifted its sales, for $58 million in cash.
Select Comfort, which has its headquarters in Plymouth, previously held an 18 percent stake in the Silicon Valley company.
“This acquisition supports our growth and future financial performance by accelerating innovation at a time when consumers are rapidly adopting new digital tools and using their personal data to improve health and wellness,” said Select Comfort CEO Shelly Ibach in a statement.
Select Comfort and BAM have been partners in developing a technology called “SleepIQ” since 2012. Select Comfort sells the system, which works with smartphones and tablets, as an accessory to its beds.
The technology measures the presence, movement and average heart and breathing rates of sleepers. Data is then analyzed by a proprietary measuring system to make adjustments on the firmness of the sleepers’ side of the bed to improve sleep patterns.
Rich Rifredi, BAM’s chief executive and co-founder, said the acquisition by Select Comfort gives BAM “extensive consumer expertise and resources” to develop new “biometric solutions that improve sleep and wellness.”
Select Comfort said BAM will operate as an independent unit and continue to be based in San Jose. It will be called SleepIQ Labs.
“This acquisition strengthens our intellectual property and our competitive advantages,” said Annie Bloomquist, chief product officer for Select Comfort.
Select Comfort also announced Thursday that it has obtained a $100 million secured credit line. The company said it does not expect it will draw on the credit line to finance the BAM Labs acquisition.
Select Comfort has 460 retail stores that operate under the name Sleep Number. The company had sales of $1.15 billion in 2014.