MALVERN, Pa., April 01, 2016 (GLOBE NEWSWIRE) -- BioTelemetry, Inc. (NASDAQ:BEAT), the leading wireless medical technology company focused on the delivery of health information to improve quality of life and reduce cost of care, announced that it has completed the acquisition of the ePatch division of DELTA Danish Electronics, Light and Acoustics (“DELTA”), inclusive of all products and indications currently under development by the ePatch division. The transaction consisted of upfront consideration of $3.0 million in cash and $3.0 million in BioTelemetry restricted stock with the potential for an additional performance-based earn-out of up to $3.0 million in cash.
DELTA has previously partnered with BioTelemetry on the development of the Company’s next generation MCOTTM device, expected to launch later this year. The acquisition is expected to generate future cost savings and will provide control over proprietary components of this new system. DELTA has also developed the ePatch device, an extended-wear cardiac monitor, utilizing proprietary patch and sensor technology. The ePatch device will be integrated into BioTelemetry’s suite of Healthcare products and will provide international growth opportunities for the Company’s Technology division.
Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, commented: “As a natural step in our ongoing and productive relationship, we are excited to have acquired the ePatch division from DELTA, our longstanding partner in the development of our next generation monitoring platform. We are honored to welcome such a creative and innovative group of professionals to the BioTelemetry family. The acquired business will immediately enhance our patent and product portfolios and bolster our research and development pipeline. The acquisition also further supports our strategy to be the leader in remote cardiac monitoring.”
DELTA’s Chief Executive Officer, Juan Farré, added: “We believe BioTelemetry to be the perfect company to commercialize our developed technology in the area of ECG monitoring and patch technology. This divestment aligns with DELTA’s mission to bring Danish developed technology to commercialization through partnerships.”
DELTA Danish Electronics, Light and Acoustics is an independent technology service organization for private enterprises and public authorities. DELTA's mission is to help businesses and society in general create value through innovative use of new technology in products, processes and environment. DELTA is among Europe's leading international test, design, service, consulting and education organizations within electronics, microelectronics, software technology, light, optics, acoustics and vibration. Further information on DELTA can be found at www.madebydelta.com.
BioTelemetry, Inc., formerly known as CardioNet, Inc., is the leading wireless medical technology company focused on the delivery of health information to improve quality of life and reduce cost of care. The company currently provides cardiac monitoring services, original equipment manufacturing with a primary focus on cardiac monitoring devices and centralized cardiac core laboratory services. More information can be found at www.biotelinc.com.
BioTelemetry's Cautionary Statement Regarding Forward-Looking Statements
This document includes certain forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995 regarding, among other things, our expectations regarding the success of the DELTA transaction and related effect on the Company's operations. These statements may be identified by words such as "expect," "anticipate," "estimate," "intend," "plan," "believe," "promises" and other words and terms of similar meaning. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including important factors that could delay, divert, or change any of these expectations, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, effects of changes in health care legislation, effectiveness of our cost savings initiatives, relationships with our government and commercial payors, changes to insurance coverage and reimbursement levels for our products, the success of our sales and marketing initiatives, our ability to attract and retain talented executive management and sales personnel, our ability to identify acquisition candidates, acquire them on attractive terms and integrate their operations into our business, the commercialization of new products, market factors, internal research and development initiatives, partnered research and development initiatives, competitive product development, changes in governmental regulations and legislation, the continued consolidation of payors, acceptance of our new products and services, patent protection, adverse regulatory action, litigation success, our ability to successfully create a new holding company structure and to anticipate the benefits of such structure. For further details and a discussion of these and other risks and uncertainties, please see our public filings with the Securities and Exchange Commission, including our latest periodic reports on Form 10-K and 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Heather C. Getz