Philips, a healthcare technology company, has entered into a definitive merger agreement with BioTelemetry, a remote cardiac diagnostics, and monitoring provider. As per the agreement, Philips will commence a tender offer to acquire all the issued and outstanding shares of BioTelemetry for $72.00 per share, to be paid in cash upon completion.
The tender price represents a 16.5 percent premium to BioTelemetry’s closing price on December 17, 2020. The implied enterprise value of the merger stands to be at $2.8 billion. BioTelemetry’s board of directors has approved the transaction and recommends the offer to its shareholders.
According to the company, the acquisition of BioTelemetry is a strong fit with Philips’ cardiac care portfolio and its strategy to transform the delivery of care along the health continuum with integrated solutions.
BioTelemetry’s majority of sales primarily stems from its diagnosis and monitoring of heart rhythm disorders, representing 85% of its sales. The company also provides clinically validated offering includes wearable heart monitors (e.g., a mobile cardiac outpatient telemetry patch and extended Holter monitor) that detect and transmit abnormal heart rhythms wirelessly, AI-based data analytics, and services.
Frans van Houten, CEO of Philips, said: “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. 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. 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,” said Joseph H. Capper, President and CEO of BioTelemetry.
According to Mercom’s Q3 and 9M 2020 Digital Health Funding and M&A Report, a total of 49 digital health companies were acquired in Q3 2020 compared to 42 in Q2 2020.
Image credit: BioTelemetry