Select Comfort Corp. (Nasdaq: SCSS) is picking up the developer of the SleepIQ technology featured in its Sleep Number beds, Bam Labs Inc., for $58 million in cash. The business is paying that price for the remaining 82 percent of Bam that it does not already own.
Bam, headquartered in Los Gatos, California, develops sleep monitoring technology that can detect movements, heart rate and breathing rate. The company has $16.2 million in venture capital backing.
The two companies have worked together since 2012, when they developed SleepIQ technology, which aims to track how users sleep and adjustments that could be made to improve sleep. Bam will operate as a separate business unit and be called SleepIQ.
Select Comfort owns Sleep Number, which makes beds with adjustable firmness that are sold in more than 470 branded stores and online.
Wilson Sonsini Goodrich & Rosati, Oppenheimer Wolff & Donnelly LLP and Citigroup Global Markets Inc. are advising Sleep Number.
In another sleep-related deal, PE firm Sentinel Capital Partners picked up Hollander Sleep Products, which makes bedding products in October, and in September 2014, Mattress Firm Holding agreed to add rival Sleep Train for $425 million.