Philips to buy US remote cardiac diagnostics provider BioTelemetry
Royal Philips NV has agreed to buy BioTelemetry, a US provider of remote cardiac diagnostics and monitoring, in a deal valued at $2.8bn.
Under the terms of the agreement, BioTelemetry shareholders will receive $72 a share in cash. The board of directors of BioTelemetry has approved the deal, which is expected to complete in the first quarter of next year.
Philips said the acquisition is a strong fit with its cardiac care portfolio, and its "strategy to transform the delivery of care along the health continuum with integrated solutions".
"The combination of Philips’ leading patient monitoring position in the hospital with BioTelemetry’s leading cardiac diagnostics and monitoring position outside the hospital, will result in a global leader in patient care management solutions for the hospital and the home for cardiac and other patients," the company said.
Philips said the combination will result in significant synergies, driven by cross-selling opportunities, geographical expansion, portfolio innovation synergies, and productivity gains.
The BioTelemetry business is expected to deliver double-digit growth and improve its adjusted EBITA margin to over 20% by 2025. In addition, the acquisition will be sales growth and adjusted EBITA margin accretive for Philips in 2021.
Philips chief executive officer Frans van Houten said: "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."