Dutch Health Conglomerate Philips has announced it will acquire BioTelemetry for $2.8 billion. BioTelemetry provides products and services that allow for at-home monitoring and diagnosis of cardiac health issues.
Home healthcare moved to the forefront this year as the pandemic has made clear potential efficiencies it offers. Philips currently has a strong presence in at-home monitoring for respiratory issues, but this deal will allow them to greatly expand.
BioTelemetry currently has over 1 million patients being monitored using their products and generated over $400 million in revenue last year. It’s expected to grow at a double digit pace and improve EBITA margin to over 20% by 2020.
Philips is paying a 16.5% premium to BioTelemetry shares as of December 17th. Shares of Philips were up 1.65% following the news.