BioTelemetry, Inc. Announces the Acquisition of the Cardiac Patient Services Business of Biomedical Systems, Corp.
March 20 2014 - 8:05AM
BioTelemetry, Inc. (Nasdaq:BEAT), the leading wireless medical
technology company focused on the delivery of health information to
improve quality of life and reduce cost of care, announced that it
has entered into a definitive agreement to acquire the cardiac
patient services business of Biomedical Systems, Corp. ("BMS") for
aggregate consideration of $8.65 million at closing. Post
integration, the acquisition is expected to generate $8.0 to $9.0
million in revenue and $2.5 to $3.0 million in EBITDA on an
annualized basis. The transaction is expected to close in early
April.
All assets necessary to run the Holter, cardiac event and mobile
telemetry service lines are transferring to BioTelemetry, including
the Century Holter Analysis System, a fast and accurate software
platform with multiple configurations designed to satisfy the needs
of small and large volume accounts. The analysis software works
seamlessly with the full line of BioTelemetry Holter recorders,
including the recently FDA-cleared 14-day Holter, CardioKey.
Joseph H. Capper, President and Chief Executive Officer of
BioTelemetry, commented: "We are excited to welcome another
respected cardiac monitoring service provider into the BioTelemetry
family and look forward to building upon their longstanding
relationships with healthcare providers. As we have previously
discussed, we see consolidation of like-kind businesses as an
excellent way to accelerate our strategic plan. In addition to
the benefits of cost-side synergies and market share expansion,
this acquisition comes with an excellent Holter software platform
essential for the pending launch of CardioKey, as well as a small
operation in Europe, providing a base from which to explore
international growth opportunities. This acquisition further
demonstrates our commitment to achieving sustained long-term growth
by solidifying our leadership position in remote cardiac
monitoring."
BMS Chief Executive Officer, Timothy R. Barrett, added:
"We believe BioTelemetry to be the perfect fit as we entrust
them to build upon our strong reputation of providing superior
cardiac monitoring services directly to the physician and
patient. This divestment aligns with Biomedical Systems'
strategy to concentrate on its core business, clinical trials,
which has been experiencing tremendous growth over the last
decade."
About Biomedical Systems
Biomedical Systems is a worldwide provider of centralized
clinical trial services and cardiac monitoring solutions. Since
1975, Biomedical Systems has provided cardiologists, clinics, and
hospitals with ECG monitoring solutions including Holter
monitoring, cardiac event monitoring, and 12 lead ECG services.
Clinical trial services include cardiac safety, pulmonary function,
scientific affairs, medical imaging, neurophysiology, digital
pathology, and electronic patient reported outcomes.
About BioTelemetry
BioTelemetry, Inc., formerly known as CardioNet, Inc., is the
leading wireless medical technology company focused on the delivery
of health information to improve quality of life and reduce cost of
care. The company currently provides cardiac monitoring
services, original equipment manufacturing with a primary focus on
cardiac monitoring devices and centralized cardiac core laboratory
services. More information can be found at
www.biotelinc.com.
BioTelemetry's Cautionary Statement Regarding
Forward-Looking Statements
This document includes certain forward-looking statements within
the meaning of the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995 regarding, among other
things, our expectations regarding the success of the BMS
transaction and related effect on the Company's operations. These
statements may be identified by words such as "expect,"
"anticipate," "estimate," "intend," "plan," "believe," "promises"
and other words and terms of similar meaning. Such forward-looking
statements are based on current expectations and involve inherent
risks and uncertainties, including important factors that could
delay, divert, or change any of these expectations, and could cause
actual outcomes and results to differ materially from current
expectations. These factors include, among other things, effects of
changes in health care legislation, effectiveness of our cost
savings initiatives, relationships with our government and
commercial payors, changes to insurance coverage and reimbursement
levels for our products, the success of our sales and marketing
initiatives, our ability to attract and retain talented executive
management and sales personnel, our ability to identify acquisition
candidates, acquire them on attractive terms and integrate their
operations into our business, the commercialization of new
products, market factors, internal research and development
initiatives, partnered research and development initiatives,
competitive product development, changes in governmental
regulations and legislation, the continued consolidation of payors,
acceptance of our new products and services, patent protection,
adverse regulatory action, litigation success, our ability to
successfully create a new holding company structure and to
anticipate the benefits of such structure. For further details and
a discussion of these and other risks and uncertainties, please see
our public filings with the Securities and Exchange Commission,
including our latest periodic reports on Form 10-K and 10-Q. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
CONTACT: BioTelemetry, Inc.
Heather C. Getz
Investor Relations
800-908-7103
investorrelations@biotelinc.com
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