Health IT

Heart monitoring company CardioNet makes $6 million acquisition

Heart monitoring company CardioNet (NASDAQ:BEAT),which diagnoses and monitors irregular heartbeats, has acquired another cardiac monitoring […]

Heart monitoring company CardioNet (NASDAQ:BEAT),which diagnoses and monitors irregular heartbeats, has acquired another cardiac monitoring company in a deal valued at more than $6 million.

The acquisition target, Ohio-based ECG Scanning & Medical Services, will enable the Philadelphia, Pennsylvania-based company to expand its customer base across the Midwest, a company statement said.

CardioNet President and Chief Executive Officer Joseph Capper said: “ECG Scanning is a respected cardiac monitoring provider that affords CardioNet access to established relationships with healthcare providers and payers in the Midwest. This acquisition demonstrates our commitment to augment the growth of our core business through strategic transactions.”

Although the cash deal is for $5.8 million, meeting additional milestones would push the deal value up to $6.4 million.

CardioNet’s customers wear a lightweight senor on a neck strap or belt with three leads attached to it. The leads continuously transmit two channels of electrocardiogram data to the monitor. When there is an irregular rhythm, the data is automatically sent to the CardioNet Monitoring Center since many arrhythmic events go unnoticed by patients. But when users do experience symptoms of an irregular heartbeat, they can transmit the data themselves using the monitor’s touchscreen.

More than 4 million people suffer from recurrent arrhythmias in the United States. Among the diseases and conditions that cause them are congestive heart failure, heart disease and heart valve disorders.

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