CardioNet to Acquire Biotel for $11M
Eagan-based Biotel, Inc., announced Monday that it has entered into an agreement to be acquired by Conshohocken, Pennsylvania-based CardioNet, Inc., for $11 million, or $3.84 per share.
This is the second time that the companies have entered into a merger agreement. In April 2009, Biotel agreed to be purchased by CardioNet for $14 million, or $4.82 per share. However, the deal fell through in July 2009 when CardioNet terminated the agreement, saying Biotel failed to comply with its terms.
Along with the new merger agreement, the companies have also entered into a settlement agreement to dismiss the outstanding litigation between them related to the previous deal.
Both of Biotel's subsidiaries-Chicago-based Agility Centralized Research Services, Inc., and Eagan-based Braemer, Inc.-are included in the acquisition.
“We are pleased to join CardioNet and its growth-oriented, dynamic team,” Steven Springrose, president and CEO of Biotel, said in a statement. “As the world leader in wireless medicine, CardioNet validates the quality and performance of our products and services while providing a foundation for increasing growth.”
The transaction, which is expected to close by the end of the year, is subject to approval from Biotel shareholders and other regulatory closing conditions.
Shares of Biotel's stock were up 148 percent to $3.72 at close on Monday.
CardioNet provides outpatient management solutions for monitoring relevant and timely clinical information. Its products focus on the diagnosis and monitoring of cardiac arrhythmias, or heart rhythm disorders.
Biotel was founded in 1970 and develops, manufactures, tests, and markets medical devices and related software products. It is among the state's largest publicly traded medical device manufacturers based on revenue, which totaled $11 million in its most recent fiscal year, which ended in June.