MALVERN, Pa., Feb. 3, 2014 (GLOBE NEWSWIRE) -- 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 today a significant victory in the patent infringement case against Mednet Healthcare Technologies, Inc. and its subsidiaries, Heart-Care Corporation of America, Universal Medical Inc., and Universal Medical Laboratory, Inc. ("Mednet"), as well as other named defendants. Mednet entered into a consent judgment, declaring that the Mednet entities infringed on five patents owned by BioTelemetry and its subsidiary, Braemar Manufacturing, and that all five patents are valid.
The lawsuit, which was filed in the U.S. District Court for the Eastern District of Pennsylvania in May 2012, centered on patented technology used in BioTelemetry's Mobile Cardiac Outpatient Telemetry (MCOTTM). A litigation team from Ropes & Gray represented BioTelemetry in the case.
Following the entry of the consent judgment, BioTelemetry acquired all outstanding shares of Mednet for an aggregate purchase price of approximately $16.0 million, consisting of $5.5 million of cash, $0.8 million of BioTelemetry common stock and the assumption of $9.7 million of debt. Mednet's core competencies include outpatient cardiac monitoring and contract manufacturing of cardiac monitoring devices.
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, commented, "I believe the acquisition of Mednet is the best possible outcome for all involved. While an unorthodox path to such a combination, the company will benefit from Mednet's more than $25 million in annual revenue and its reputation for world class customer service. We expect the acquisition to be accretive, adding $4.0 to $5.0 million of EBITDA post-integration. We are pleased to add the Mednet employees to the BioTelemetry team and look forward to continuing to provide superior service to their many loyal customers."
Christopher Keane, President of Mednet, commented, "This merger is the perfect fit for the Mednet family. It will allow Mednet to continue to provide unparalleled service while allowing us to offer Biotelemetry's industry leading technology to our customers."
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.
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, the impact of the Mednet acquisition on our operations and our ability to successfully integrate their operations, the prospects for our products and our confidence in the Company's future, as well as our expectations regarding the effect the United contract will have on the company's operating results. 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, and 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.