SAN DIEGO, CA., and WEST PALM BEACH, FL. – February 6, 2007
San Diego-based CardioNet, the leading provider of wireless mobile cardiac outpatient monitoring solutions, announced today that it has reached a definitive agreement to acquire Florida-based PDSHeart, Inc., a leading cardiac event monitoring company. The acquisition is expected to close in March 2007; the terms of the agreement were not disclosed.
PDSHeart's line of cardiac event monitors and related services will be added to CardioNet's industry-leading real-time, wireless mobile cardiac outpatient monitoring platform, marketed as the CardioNet System. The combination will position the company as a single source for a comprehensive range of arrhythmia monitoring solutions. The combined company is currently serving patients in 49 states.
“The merger of CardioNet and PDSHeart will immediately create the largest U.S. company in the growing field of outpatient cardiac monitoring,” said James M. Sweeney, Chairman and CEO of CardioNet. “It will allow us to provide physicians with a complete continuum of cardiac monitoring solutions they need today to more rapidly and effectively diagnose and treat patients with cardiovascular disease.”
“We expect to fully integrate the leadership and the best practices from each organization to create the gold standard in the outpatient cardiac monitoring industry - offering a proven and complete solution for our physician-clients, with unparalleled technology and expertise,” Sweeney added.
PDSHeart President and CEO Sean Heyniger said, “CardioNet's technology is the next generation of remote cardiac telemetry, representing the future of this industry. Importantly, outpatient cardiac monitoring increasingly involves the use of the latest mobile technologies to monitor heart function, and diagnose potentially serious conditions such as arrhythmias, which can lead to stroke and sudden cardiac death. With our combined technology, products, and expertise, aided by PDSHeart's national reach and larger customer base, we will be the absolute leader in outpatient cardiac monitoring.”
PDSHeart, Inc. will operate as a subsidiary of CardioNet, with its corporate offices in West Palm Beach, Florida. CardioNet's corporate headquarters are located in San Diego, California. CardioNet's principle monitoring center is in Conshohocken, Pennsylvania.
CardioNet is a leading provider of ambulatory, wireless, real-time arrhythmia monitoring, having provided services to over 65,000 patients. The company has invested over $84 million and seven years developing its medical devices and 24-hour monitoring service center. Of that amount, it has invested over $40 million developing its proprietary integrated patient monitoring platform that incorporates a wireless data transmission network, internally developed software, and FDA cleared algorithms. CardioNet's initial efforts are focused on the diagnosis and monitoring of cardiac arrhythmias (heart rhythm disorders) and drug-therapy titration, with a solution providing heartbeat-by-heartbeat monitoring on a continuous basis. Since its inception, CardioNet has been able to secure reimbursement with Medicare, and by contracting with over 143 commercial insurance companies, allowing access to over 142 million individuals in the United States. CardioNet was recently named one of “50 medical companies to watch” by Medical Device and Diagnostic Industry magazine. For more information, visit www.cardionet.com.
About PDSHeart: Founded in 2000, PDSHeart is a leading provider of cardiac monitoring services. It provides physician-prescribed remote and ambulatory care monitoring of asymptomatic and symptomatic arrhythmia detection via landline, cellular telephone and the Internet. PDSHeart's WebHolter® is the industry's first web-based digital Holter monitoring system. PDSHeart is providing monitoring services to approximately 150,000 patients in 49 U.S. states. PDSHeart currently operates monitoring centers in Minneapolis, Florida, and Georgia. For more information, visit www.pdsheart.com.
SunTrust Robinson Humphrey is serving as the financial advisor to CardioNet in connection with its acquisition of PDSHeart, Inc.