Chicago-based medical technology company Hillrom is acquiring Bardy Diagnostics (BardyDx), a digital health and ambulatory cardiac monitoring technologies provider, for $375 million.
Bardy Diagnostics will also be eligible to receive possible payments in the future based on the meeting of certain commercial milestones.
Additionally, Hillrom will acquire the net operating losses of Bardy Diagnostics, valued at over $20 million, which are expected to yield tax benefits in the future.
The medical technology company said that the acquisition of Bardy Diagnostics will complement its existing cardiology portfolio of cardiac stress exercise – Holter and also resting electrocardiography (ECG) devices.
John Groetelaars – Hillrom President and CEO said: “This acquisition provides Hillrom with a highly strategic and differentiated diagnostic cardiology platform aligned with our vision of Advancing Connected Care, as well as an attractive recurring, high-growth revenue stream and gross margin profile.
“BardyDx brings a talented team with significant commercial, clinical and scientific expertise, and dedicated independent diagnostic testing facilities. We look forward to welcoming the 230 employees who will join us in our mission of enhancing outcomes for patients and their caregivers.”
Founded in 2013, Bardy Diagnostics developed a wearable bio-sensing technology called Carnation Ambulatory Monitor (CAM patch). The device is said to provide superior P-wave clarity, improved diagnostic yield, and enhanced clinical accuracy.
The CAM patch is claimed to have been designed to promote patient compliance, optimize clinical workflow, and deliver clinically actionable data in a CAM report to help physicians detect specific arrhythmias for better clinical decision-making.
It also features a circuit design and is said to use advanced compression algorithms for the processing of the signal to ensure P-wave recording and accuracy.
Gust H. Bardy – electrophysiologist, founder, and chief medical officer of Bardy Diagnostics said: “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.
“Our team coupled advanced diagnostics with comfort and ease-of-use for the patient, and simple implementation for clinicians. By joining Hillrom, we will broaden our footprint globally with the goal of providing greater patient value and more confident physician diagnoses.”
Once the customary closing conditions are satisfied, the deal is expected to be completed in the fiscal second quarter of 2021, said Hillrom.