In a move which the company says leverages its capabilities in an adjacent market, Cardiac telemedicine specialist CardioNet, Inc. has entered into a definitive merger agreement with cardioCORE Lab, Inc., a leading centralised cardiac testing laboratory with locations near Washington, D.C., San Francisco, CA and London, UK.
Telemedicine company CardioNet, based in Pennsylvania, is a specialist in ambulatory, continuous, real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual’s health. In what is a young and rapidly evolving market, CardioNet’s initial efforts are focused on the diagnosis and monitoring of cardiac arrhythmias, or heart rhythm disorders, with a solution that it markets as Mobile Cardiac Outpatient Telemetry™ (MCOT™).
cardioCORE is in a different, but related space, having provided centralised cardiac testing services to the pharmaceutical industry for 18 years. The company’s services are supported by an advanced data management system featuring the proprietary HolterGateway™ and CardioPortal™.
The total consideration to be paid by CardioNet will be $23.5 million. with an option to pay up to $3.5 million of the total consideration in the form of common stock.
The transaction, subject to customary closing conditions, is expected to close in the third quarter of 2012.
Joseph Capper, President and Chief Executive Officer of CardioNet, commented: “The acquisition of cardioCORE is an important step toward achieving our previously announced strategic objectives. We are now in an excellent position to leverage our current technology and monitoring infrastructure into a large and growing adjacent market. Additionally, this acquisition goes a long way in mitigating some of our revenue concentration and reimbursement risk. We are truly becoming a full-service cardiac monitoring company.”
Jennifer Cotteleer, President and Chief Executive Officer of cardioCORE, commented: “We are looking forward to joining forces with CardioNet to continue the development of products and services that support excellence in cardiac monitoring for clinical research and patient care. The combined strength of the companies creates the platform to produce ongoing innovation in support of this goal.”
Source: CardioNet Inc., Business wire