Medtronic Buys MN “Teleheath” Firm For $200M
Medtronic, Inc., said Monday that it has acquired Chanhassen-based Cardiocom, a privately held provider of “telehealth” and disease management services, for $200 million in cash.
Fridley-based Medtronic—one of Minnesota’s 10 largest public companies—said the deal supports a larger goal of expanding the company’s focus from medical devices to include broader health care services. Cardiocom’s technology will help Medtronic provide services to heart-failure patients, among other things.
Cardiocom focuses on a number of diseases, such as diabetes and cardiovascular disease, including heart failure and hypertension, Medtronic said. Cardiocom’s products and services include remote monitoring and software to enable “telehealth” support, or providing services through telecommunications. (To read a recent Twin Cities Business feature story about the growing telehealth field, click here.)
Medtronic said it “expects the net impact from this transaction to be neutral to fiscal-year 2014 earnings and for this transaction to be consistent with the company’s disciplined focus on long-term returns.”
“With the integration of Cardiocom, our portfolio of products and services will span the continuum of care for the management of heart failure, which affects an estimated 7.5 million people in the United States and is a significant burden to the health care system—representing 1.1 million hospital visits per year in the United States at a cost of $39 billion each year,” Mike Genau, senior vice president and president of Medtronic’s U.S. region, said in a statement. “We seek to reduce that burden on hospitals, physicians, payers, and patients.”