Philips has again asserted itself in the takeover market. The Dutch multinational is taking the next step in its transformation into a healthcare technology company with the multi-billion acquisition of BioTelemetry, an American company that monitors over a million heart patients remotely.
Philips will pay 2.8 billion dollars (about 2.3 billion euros) for the acquisition. BioTelemetry’s Board of Directors has already agreed, but shareholders have yet to approve the deal.
Philips expects the deal to be completed in the first quarter of 2021.
Heart monitor
BioTelemetry, listed on the American tech exchange Nasdaq, specializes in remotely monitoring patients with heart problems and diabetes. This market for monitoring is a lucrative growth market, Philips expects.
The Dutch company expects BioTelemetry to grow double-digit in terms of turnover in the coming years and that earnings before interest, taxes and depreciation will be more than 20 percent higher by 2025. This growth must mainly come from cost savings and joint sales, especially in the US.
Connected Care
BioTelemetry comes from the Cardionet company, which was founded in San Diego in 1994. Since 1999 it has specialized in remote heart monitoring, for which it has built its own platform. About 1900 people now work at BioTelemetry.
After approval of the deal, they will become part of the Philips Connected Care division.
