Remote medical technology company BioTelemetry Inc. (BEAT:NASDAQ), which focuses on diagnosis and monitoring of heart rhythm disorders, today announced that it has entered into a definitive merger agreement with global health technology firm Royal Philips (PHG:NYSE PHIA:AEX) of the Netherlands.
The firms advised that under the terms of the agreement, Philips will submit a tender offer to acquire all of the issued and outstanding shares of BioTelemetry for US$72.00 per share in cash, which equates to a total enterprise value for BioTelemetry of approximately US$2.8 billion.
BioTelemetry advised that its Board of Directors has already approved the transaction and is recommending that its company's shareholders accept the tender offer from Philips. The company stated that it expects the transaction to close in Q1/21.
Royal Philips' CEO Frans van Houten remarked, "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."
BioTelemetry's President and CEO Joseph H. Capper commented, "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."
The report indicated that diagnosis and monitoring of heart rhythm disorders products and services accounts for 85% of BioTelemetry's yearly sales. The firm's clinically validated devices includes wearable heart monitors capable of detecting and transmitting abnormal heart rhythms wirelessly.
BioTelemetry stated that when the transaction is completed BioTelemetry and its roughly 1,900 employees will become part of Philips' Connected Care business segment. The companies listed that the transaction remains subject to customary closing conditions and regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
BioTelemetry Inc. is a remote medical technology company based in Malvern, Pa. The firm's devices monitor greater than one million patients annually processing over four billion heartbeats each day. The company serves both healthcare and clinical research customers by offering remote cardiac monitoring capabilities, remote blood glucose monitoring and centralized laboratory services for clinical trials.
Royal Philips is a $49 billion market cap health technology company headquartered in Amsterdam. The firm is a well-known name that is engaged in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, consumer health and home care. The company employs around 81,000 people worldwide and markets its products and services in over 100 countries.
BioTelemetry began the day with a market capitalization of around $2.1 billion with approximately 34.26 million shares outstanding and a short interest of about 10.30%. BEAT shares opened nearly 18% higher today at $72.75 (+$10.97, +17.76%) over yesterday's $61.78 closing price and reached a new 52-week high this morning of $73.10. The stock has traded today between $71.96 and $73.10 per share and is currently trading at $72.05 (+$10.27, +16.62%).[NLINSERT]
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.