Philips Taps Into Remote Care Growth With $2.47 Billion BioTelemetry Deal -- Update
--Philips seeks to boost telehealth operations to capitalize on
demand for remote care
--Dutch company will start a tender offer to buy BioTelemetry
shares at $72 each
--Philips expects acquisition to boost sales growth and
By Adria Calatayud
Koninklijke Philips NV has agreed to buy U.S. remote
medical-technology company BioTelemetry Inc., in a $2.47 billion
deal that seeks to boost its telehealth operations to tap into
growing demand for remote care on the back of the coronavirus
The Dutch medical-technology company said Friday that Malvern,
Pennsylvania-based BioTelemetry, a provider of remote cardiac
diagnostics and monitoring, fits well in its strategy. Philips said
its strength in patient monitoring in hospitals will be
complemented by BioTelemetry's position outside hospitals.
Philips said telehealth services and remote monitoring are on
the rise around the world, as the pandemic has accelerated adoption
of these options as patients sought to stay away from
"Covid has been an accelerator. The technology was already
there, but doctors and patients liked coming in to hospitals for
their care," Chief Executive Frans van Houten said in a call with
BioTelemetry President and CEO Joseph H. Capper said Philips'
portfolio, innovation and global scale will allow it to address the
rising demand for telehealth and remote-monitoring services.
While BioTelemetry focuses on the diagnosis and monitoring of
heart rhythm disorders and predominantly operates in the U.S.,
Philips aims to eventually add other therapeutic areas and take its
services to new markets, it said.
Philips said it will start a tender offer to acquire all of the
issued and outstanding shares of BioTelemetry for $72.00 each, to
be paid in cash upon completion. That price represents a 16.5%
premium to BioTelemetry's closing price on Thursday, Philips
Philips said the deal implies an enterprise value for the target
of $2.8 billion, including BioTelemetry's cash and debt.
The acquisition of BioTelemetry will result in significant
synergies driven by cross-selling opportunities, geographical
expansion, portfolio innovation synergies, and productivity gains,
Since BioTelemetry has higher revenue growth rates and profit
margins than the Dutch company, Philips said the deal will be
accretive for its sales growth and adjusted earnings margin in
BioTelemetry said its board has approved the transaction and
recommends the offer to its shareholders. The acquisition is
expected to close in the first quarter of 2021, Philips said.
Shares in Philips at 0840 GMT were up EUR0.94, or 2.1%, at
Write to Adria Calatayud at firstname.lastname@example.org
(END) Dow Jones Newswires
December 18, 2020 04:26 ET (09:26 GMT)
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