MALVERN, Penn., March 20, 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 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.