Hillrom to buy cardiac monitoring company Bardy Diagnostics for $375M
In another deal for cardiac monitoring, Hillrom (NYSE: HRC) will buy Seattle-based startup Bardy Diagnostics for $375 million. The company, which was founded in 2013 by electrophysiologist Dr. Gust Bardy, makes an electrocardiogram (ECG) patch that can be worn for up to two weeks to help physicians detect arrhythmias.
In addition to its technology, Bardy Diagnostics’ 230 employees are expected to join the company, Hillrom President and CEO John Grotelaars said in a news release.
It would add at-home monitoring to Hillrom’s existing suite of cardiology tools. The medical technology company makes ECG devices and a cardiac stress testing system, both of which were designed to be used in a clinical setting.
“We set out to elevate ECG monitoring through an entirely new approach to signal processing, ECG reader training and report analysis tools and format, which allow for precise diagnoses of both common and abstruse arrhythmias,” Bardy said in a news release. “By joining Hillrom, we will broaden our footprint globally with the goal of providing greater patient value and more confident physician diagnoses.”
The deal is expected to close in the second quarter of this year. Hillrom will pay $375 million in cash and potentially more, based on certain commercial milestones. It plans to finance the acquisition using cash on hand and credit.
Bardy Diagnostics brings in roughly $30 million per year in annualized revenue. After five years, Hillrom expects to see a 10% return on its investment.
It’s also one of several acquisitions involving remote monitoring tools for cardiology in recent months. In December, Philips bought remote cardiac monitoring startup BioTelemetry for $2.8 billion, and more recently, Boston Scientific shared plans to acquire Preventice for $925 million.
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