CardioNet has announced that it has entered into a definitive merger agreement with Cardiocore a leading centralised cardiac testing laboratory with locations in USA and UK.
The total consideration to be paid by CardioNet will be US$23.5 million. At its option, CardioNet may pay up to US$3.5 million of the total consideration in the form of common stock. The transaction, subject to customary closing conditions, is expected to close in the third quarter of 2012.
“The acquisition of Cardiocore is an important step toward achieving our previously announced strategic objectives.We are now in an excellent position to leverage our current technology and monitoring infrastructure into a large and growing adjacent market. Additionally, this acquisition goes a long way in mitigating some of our revenue concentration and reimbursement risk. We are truly becoming a full-service cardiac monitoring company,” said Joseph Capper, president and CEO of CardioNet.
“We are looking forward to joining forces with CardioNet to continue the development of products and services that support excellence in cardiac monitoring for clinical research and patient care. The combined strength of the companies creates the platform to produce ongoing innovation in support of this goal,” said Jennifer Cotteleer, president and CEO of Cardiocore.
Cardiocore is expected to generate US$19.0 to US$20.0 million in revenue and US$3.5 to US$4.0 million in EBITDA for the full year 2012.