Philips scoops up BioTelemetry for $2.8B in big bet on remote care

Dec. 18, 2020 5:06 AM ETKoninklijke Philips N.V. (PHG)PHGBy: Yoel Minkoff, SA News Editor6 Comments
  • Philips (NYSE:PHG) has agreed to buy U.S. cardiac diagnostics and monitoring firm BioTelemetry (NASDAQ:BEAT) for $2.8B, sending shares of the latter up 15% in premarket trade. Philips will pay $72 per outstanding BioTelemetry share in cash, marking a 16.5% premium to the stock's closing price on Thursday.
  • BioTelemetry primarily focuses on the diagnosis and remote monitoring of heart rhythm disorders, a business that represented 85% of its $439M sales last year, and will become part of Philips' connected care business.
  • "We have always been very optimistic about connected care," Philips CEO Frans van Houten told reporters. "With COVID we have seen an acceleration of the demand and we think this acquisition fits perfectly in this era where remote patient monitoring will become ever more important."
  • The company expects BioTelemetry to deliver double-digit growth and improve its adjusted EBITA margin to more than 20% by 2025.
  • PHG +2.4% premarket

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