Royal Philips has agreed a merger agreement with BioTelemetry, a cardiac monitoring company focused on the diagnosis and monitoring of heart rhythm disorders.
Philips will commence a tender offer to acquire all of the issued and outstanding shares of BioTelemetry for US$72.00 per share, to be paid in cash upon completion. The board of directors of BioTelemetry has approved the transaction and recommends the offer to its shareholders. The transaction is expected to be completed in the first quarter of 2021.
In a statement, Philips said that the acquisition of BioTelemetry is a strong fit with its own cardiac care portfolio, and its strategy “to transform the delivery of care along the health continuum with integrated solutions”.
Philips’ current portfolio includes real-time patient monitoring, therapeutic devices, telehealth and informatics.
“The acquisition of BioTelemetry fits perfectly with our strategy to be a leading provider of patient care management solutions for the hospital and the home,” said Frans van Houten, CEO of Royal Philips. “BioTelemetry’s leadership in the large and fast growing ambulatory cardiac diagnostics and monitoring market complements our leading position in the hospital. Leveraging our collective expertise, we will be in an optimal position to improve patient care across care settings for multiple diseases and medical conditions.”
“Through continued innovation, we have developed the world’s largest remote cardiac monitoring services network,” said Joseph H Capper, President and CEO of BioTelemetry. “We are delighted to become part of Philips and continue on our journey to deliver health information to improve the quality of life and reduce the cost of care. Combined with Philips’ current patient care management portfolio, innovation strength and global scale, we are perfectly equipped to address the rising demand for telehealth and remote monitoring solutions.”
BioTelemetry primarily focuses on the diagnosis and monitoring of heart rhythm disorders, representing 85% of its sales. BioTelemetry’s clinically validated offering includes wearable heart monitors—a mobile cardiac outpatient telemetry patch and extended Holter monitor—that detect and transmit abnormal heart rhythms wirelessly, AI-based data analytics and services. Additionally, BioTelemetry has a clinical research business that provides testing services for clinical trials.