Hillrom acquires Bardy Diagnostics for $375 Million

Hillrom, a medical technology company, announced a definitive agreement to acquire Bardy Diagnostics (BardyDx), a non-invasive cardiac monitor patch that helps detect arrhythmia.

Under the terms of the agreement, Hillrom will purchase BardyDx for a cash consideration of $375 million and future potential payments based on the achievement of certain commercial milestones.

BardyDx has annualized revenue of $30 million and net operating losses of more than $20 million, according to the press release. BardyDx employs 230 people, with offices in Seattle, Houston, and New Providence.

Hillrom said in a news release, the acquisition of BardyDx complements its current cardiology portfolio of cardiac stress exercise, Holter, and resting electrocardiography (ECG) devices. Hillrom expects to close the transaction in the fiscal second quarter of 2021, subject to customary closing conditions.

The BardyDx wearable bio-sensing technology – Carnation Ambulatory Monitor (or CAM patch) is designed to be worn comfortably for approximately a week to improve patient compliance. The Carnation Ambulatory Monitor uses a unique circuit design and algorithms to process P-wave recording.

According to BardyDx, its device captures clearer and more accurate heart rhythms than competing electrocardiography monitors.

“We set out to elevate ECG monitoring through an entirely new approach to signal processing, ECG reader training and report analysis tools and format, which allow for precise diagnoses of both common and abstruse arrhythmias,” said Gust H. Bardy, M.D., electrophysiologist, founder, and chief medical officer of Bardy Diagnostics. “Our team coupled advanced diagnostics with comfort and ease-of-use for the patient, and simple implementation for clinicians. By joining Hillrom, we will broaden our footprint globally to provide greater patient value and more confident physician diagnoses.”

“This acquisition provides Hillrom with a highly strategic and differentiated diagnostic cardiology platform aligned with our vision of Advancing Connected Care, as well as an attractive recurring, high-growth revenue stream and gross margin profile,” said Hillrom President and CEO John Groetelaars.

This is not HillRom’s first acquisition. In 2019, HillRom acquired Voalte, a real-time communication app for hospitals and health systems, for $180 million. A total of 184 digital health companies were acquired in 2020, compared to 169 in 2019, a 9% increase in M&A activity in year-over-year, according to Mercom’s Q4 and 2020 Digital Health Funding and M&A Report.