Royal Philips is bringing 2020 to a close with a high-scale acquisition. The Amsterdam, Netherlands-based company has signed a definitive agreement to drop $2.8 billion or $72 per share to acquire BioTelemetry, a remote cardiac diagnostics, and monitoring company.
Philips said Malvern, PA-based BioTelemetry is a strong fit with its cardiac care portfolio, and its strategy to transform the delivery of care along the health continuum with integrated solutions.
BioTelemetry’s clinically validated offering includes wearable heart monitors that detect and transmit abnormal heart rhythms wirelessly, AI-based data analytics and services. With more than 30,000 unique referring physicians per month, BioTelemetry provides services for over one million patients per year.
Additionally, BioTelemetry has a clinical research business that provides testing services for clinical trials. The total addressable market is $3+ billion, growing high-single-digits driven by an increasing prevalence of chronic diseases, and the adoption of remote monitoring and outcome-oriented models.
“The acquisition of BioTelemetry fits perfectly with our strategy to be a leading provider of patient care management solutions for the hospital and the home,” said Frans van Houten, CEO of Royal Philips. “BioTelemetry’s leadership in the large and fast-growing ambulatory cardiac diagnostics and monitoring market complements our leading position in the hospital.
Philips began 2020 with a bang. The company started the process of detangling its Domestic Appliance business – a unit that generated sales of $2.53 billion in 2019.
The company noted it was divesting the Domestic Appliance business because it wanted to focus more on healthcare.
Philip would get into a bit of controversy during the pandemic. The U.S. Department of Health and Human Services canceled the remainder of a contract with the company for ventilators.
The contract’s cancelation comes hot on the heels of a scathing report from the Democratic members of the House Oversite Committee, noting that the Trump administration had failed to properly manage and negotiate contracts for ventilators, according to a report from CBS News.
The House Oversite Committee said the Trump administration had agreed to pay $15,000 each for Trilogy EV300 ventilators, after Phillips failed to provide the 10,000 Trilogy Evo Universal ventilators that were ordered in 2014 for $3,280 each, according to the report from CBS News.