iRhythm to acquire rival cardiac monitoring company for $288M
iRhythm, the San Francisco-based medtech company known for its cardiac remote monitoring technologies, has agreed to acquire industry rival VitalConnect for approximately $287.5 million. This includes approximately $237.5 million in cash and an additional $50 million in common stock.
San Jose-based VitalConnect sells the VitalPatch, an FDA-approved wearable biosensor that uses artificial intelligence algorithms to deliver real-time ECG data in addition to other important vital signs. It delivers these data through the cloud, putting helpful information in the hands of clinicians without waiting for patients to mail back the device.
According to iRhythm, acquiring VitalConnect immediately expands the company’s presence in the cardiac monitoring market.
“This combination represents a significant next step in iRhythm's evolution from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform,” Quentin Blackford, president and CEO of iRhythm, said in a statement. “VitalConnect adds complementary mobile cardiac telemetry, multi-vitals and hospital monitoring capabilities that complement Zio and meaningfully expand the categories of patients and customers we can serve. By bringing these capabilities onto iRhythm's commercial platform, we believe we can accelerate our growth, deepen customer partnerships and reach more patients across the continuum of care.”
The VitalConnect VitalPatch. Image courtesy of VitalConnect.
“We believe that iRhythm is the right strategic partner to extend the reach and impact of VitalConnect's technology,” added Peter Van Haur, CEO of VitalConnect. “By combining our flexible biosensor platform, AI-enabled algorithms and streamlined workflows with iRhythm's commercial scale and reach, we intend to bring a more compelling portfolio to a larger base of customers and patients than either company could deliver independently. Together, we expect to unlock new growth opportunities across ambulatory cardiac monitoring, inpatient monitoring and hospital-to-home care.”
iRhythm recovering after security breach
In June, iRhythm revealed that it was the victim of a cybersecurity incident targeting proprietary data. The company has emphasized that its core medical devices were not impacted by this breach in any way. It is unclear at this time how much data was stolen by the attackers, or if iRhythm paid any sort of ransom.
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Michael has more than 19 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.