Medical technology company Hillrom has agreed to acquire digital health and ambulatory cardiac monitoring technologies provider Bardy Diagnostics for a cash consideration of $375m.

Bardy Diagnostics is also eligible to receive potential payments in the future based on the achievement of certain commercial milestones.

The deal also includes the acquisition of Bardy’s net operating losses valued at over $20m, which are expected to result in future tax benefits.

Hillrom stated that the acquisition of BardyDx complements its current cardiology portfolio of cardiac stress exercise, Holter and resting electrocardiography (ECG) devices.

Established in 2013, BardyDx offers a wearable bio-sensing technology called Carnation Ambulatory Monitor (CAM patch). The device is developed to offer P-wave clarity, improved diagnostic yield and enhanced clinical accuracy.

CAM patch is BardyDx’s first continuous-wear and wire-free ambulatory patch monitor

CAM patch is said to be the firm’s first continuous-wear and wire-free ambulatory patch monitor designed to offer signal clarity with a focus on the P-wave.

The company has developed the CAM patch to boost patient compliance, streamline clinical workflow and deliver clinically actionable data through a CAM report to help physicians detect specific arrhythmias for better clinical decision-making.

Featuring a new design, the device uses advanced compression algorithms for the processing of the signal to ensure P-wave recording and accuracy.

Hillrom president and CEO John Groetelaars said: “This acquisition provides Hillrom with a highly strategic and differentiated diagnostic cardiology platform aligned with our vision of Advancing Connected Care, as well as an attractive recurring, high-growth revenue stream and gross margin profile.

“BardyDx brings a talented team with significant commercial, clinical and scientific expertise, and dedicated independent diagnostic testing facilities. We look forward to welcoming the 230 employees who will join us in our mission of enhancing outcomes for patients and their caregivers.”

Subject to customary closing conditions, the deal is expected to be completed in the fiscal second quarter of 2021.

In August 2019, Hillrom has signed an agreement to acquire Breathe Technologies for a cash consideration of $130m.

Breathe Technologies is engaged in developing and manufacturing of patented wearable, non-invasive ventilation technology that supports improved patient mobility.