Select Comfort to Buy BAM Labs

September 11, 2015  by in Acquisition, Industry   

Select Comfort previously held an 18 percent equity investment in BAM. BAM and Select Comfort partnered in 2012 to develop the SleepIQ technology.

Following the acquisition, BAM will operate as an independent division called SleepIQ Labs and will remain based in San Jose, Calif.

“Together, Sleep Number and SleepIQ LABS will continue to redefine and elevate what consumers can expect from their sleep experience,” said Shelly Ibach, president and CEO of Select Comfort. “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.”

Sleep IQ measures a sleeper’s presence, movement and heart and breathing rates. The information is then analyzes the data to provide people with daily information on their sleep health.

“We share Sleep Number’s passion for innovation and dedication to its mission to improve lives,” said Rich Rifredi, co-founder and CEO of BAM. “Sleep Number will provide extensive consumer expertise and resources as we further develop smart, connected biometric solutions that improve sleep and wellness.”

The sale is expected to close in the third quarter of 2015.

In addition to the acquisition, Select Comfort has also obtained a $100 million senior secured revolving credit line. The company said it doesn’t expect to use the line for the acquisition.