Dutch health technology firm Royal Philips has reached a definitive merger agreement with remote medical monitoring technology firm BioTelemetry, worth $2.8bn.

Under the terms of the merger agreement, Philips is expected to place a tender offer to acquire all the shares of BioTelemetry at a price of $72 per share, in cash.

The transaction value indicates a 16.5% premium to BioTelemetry’s closing price on 17 December 2020, and is expected to be closed in the first quarter of 2021, said the company.

Royal Philips CEO Frans van Houten said: “The acquisition of BioTelemetry fits perfectly with our strategy to be a leading provider of patient care management solutions for the hospital and the home.

“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.”

BioTelemetry acquisition complements Philips’ cardiac care portfolio

Philips said that the acquisition of BioTelemetry complements its cardiac care portfolio, and is in line with its strategy of transforming the delivery of care with integrated solutions.

The transaction combines Philips’ in-hospital patient monitoring capabilities with the BioTelemetry’s cardiac diagnostics and monitoring capabilities outside the hospital

Also, the merger is expected to strengthen Philips’ position as a provider of patient care management solutions for the hospital and the home for cardiac and other patients.

Once the transaction is completed, BioTelemetry will become a part of Philips’ Connected Care business division, along with its nearly 1,900 employees.

Philips’ portfolio includes real-time patient monitoring, therapeutic devices, telehealth and informatics. Moreover, the company has an advanced and secure cloud-based Philips HealthSuite digital platform optimised for the delivery of healthcare across care settings.

BioTelemetry primarily focused on the diagnosis and monitoring of heart rhythm disorders. Its clinically validated offering includes wearable heart monitors for detection and wireless transmission of abnormal heart rhythms, AI-based data analytics and services.

BioTelemetry president and CEO Joseph H Capper said: “Through continued innovation, we have developed the world’s largest remote cardiac monitoring services network. We are delighted to become part of Philips and continue on our journey to deliver health information to improve the quality of life and reduce the cost of care.

“Combined with Philips’ current patient care management portfolio, innovation strength and global scale, we are perfectly equipped to address the rising demand for telehealth and remote monitoring solutions.”