Under the terms of the acquisition, CardioNet may pay up to $3.5m of the total consideration in the form of common stock.

The transaction, which is expected to close in the third quarter of 2012, is subject to customary closing conditions.

CardioNet president and chief executive officer Joseph Capper said the acquisition of cardioCORE is an important step toward achieving the company’s 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," Capper added.

"Additionally, this acquisition goes a long way in mitigating some of our revenue concentration and reimbursement risk."

cardioCORE president and chief executive officer Jennifer Cotteleer said, "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."