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BioTelemetry Shares Beat Higher on Royal Philips $2.8 Billion Buyout Offer

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Shares of BioTelemetry Inc. rise 16.5% to a new 52-week high after Royal Philips agreed to acquire the company for US$2.8 billion, or US$72.00 per share in an all cash transaction.

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%).


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