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TikTok parent ByteDance acquires private hospital chain

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TikTok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019.

Dado Ruvic | Reuters

TikTok parent-company ByteDance’s healthcare unit in China, Xiaohe Health, has acquired a high-end healthcare organization called Amcare Healthcare.

Bloomberg said the deal is worth $1.5 billion.

Amcare Healthcare was founded in Beijing in 2006 and it offers medical services like maternity care, women’s health and pediatrics. It also operates Amcare Women’s & Children’s Hospital, which is the main brand of Amcare Healthcare in China.

A spokesperson for Xiaohe Health confirmed the acquisition. The company didn’t immediately explain why it’s expanding into healthcare. But it’s a trend in the tech sector as companies try to find new ways to serve customers.

Amazon announced in July that it is acquiring One Medical for roughly $3.9 billion. Apple continues to expand in the space. Its Health app can store medical records if a patient visits a healthcare provider that supports the system, for example, and CEO Tim Cook once remarked the company’s “greatest contribution to mankind” will be “about health.”

Source: CNBC