RTTNews | Dec 18, 2020 02:50AM EST

02:49 Friday, December 18, 2020 (RTTNews.com) - Dutch consumer electronics giant Philips Electronics NV (PHGFF.PK, PHG) announced Friday its agreement to acquire BioTelemetry, Inc. (BEAT), a U.S.-based provider of remote cardiac diagnostics and monitoring, for $72.00 per share, to be paid in cash upon completion.

The deal implies an enterprise value of $2.8 billion or around 2.3 billion euros. Philips will commence a tender offer to acquire the company. The transaction is expected to be completed in the first quarter of 2021.

The per share price represents a 16.5 percent premium to BioTelemetry's closing price on December 17.

The acquisition is expected to be sales growth and adjusted EBITA margin accretive for Philips in 2021. Philips expects BioTelemetry business to deliver double-digit growth and improve its Adjusted EBITA margin to over 20% by 2025.

With 2019 sales of $439 million, BioTelemetry annually monitors over 1 million cardiac patients remotely; its portfolio includes wearable heart monitors, AI-based data analytics and services.

Philips expects to combine its patient monitoring position in the hospital with BioTelemetry's cardiac diagnostics and monitoring position outside the hospital.

The combination will result in significant synergies driven by cross-selling opportunities, geographical expansion, portfolio innovation synergies, and productivity gains.

Upon completion of the transaction, BioTelemetry and its around 1,900 employees will become part of Philips' Connected Care business segment.

Read the original article on RTTNews ( https://www.rttnews.com/3154876/philips-to-buy-remote-medical-technology-firm-biotelemetry-in-2-8-bln-deal.aspx)

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