Royal Philips is to acquire the leading supplier of home cardiac monitoring systems in a €2.3bn ($2.8bn) deal it calls a merger. The all-cash deal with San Diego-based BioTelemetry will boost Philips’ home monitoring Connected Care division and brings a US clinical trials division. The deal also brings a US cloud patient monitoring system at a time when the handling of patient data will be a key issue between the US and Europe.
BioTelemetry has 1900 staff and sales of $439m in 2019 with several acquisitions of European medical systems companies in the last two years, including Lifewatch AG in Switzerland and ADEA Medical AB in Sweden.
The company currently monitors over 1 million cardiac patients a year remotely via a portfolio of wearable heart monitors, AI-based data analytics and services. Systems from Philips are used to monitor 300m patients in hospitals and 10m sleep and respiratory patients at home.
The transaction is expected to be completed in the first quarter of 2021.
“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 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 has clinically validated wearable heart monitors that detect and transmit abnormal heart rhythms wirelessly, AI-based data analytics and services. With over 30,000 unique referring physicians per month, BioTelemetry provides services for over one million patients per year. The company also has a clinical research business that provides testing services for clinical trials.
The transaction is structured as a cash tender offer by Philips for all of the issued and outstanding shares of BioTelemetry for $72.00.