iRhythm completed Monday its acquisition of cardiac remote patient monitoring company VitalConnect for $237.5 million in an all-cash deal.
iRhythm provides end-to-end cardiac monitoring services while VitalConnect’s monitoring platform supports multiple modalities—and has the capability to monitor up to 11 physiological parameters, according to an Oct. 5 press release.
In addition to the $237.5 million all-cash deal, iRhythm provided VitalConnect with $10 million in working capital between signing and closing, executives say. The acquisiton is expected to increase iRhythm’s revenue growth rate and maintain its 15% adjusted EBITDA margin target for 2027.
An estimated 27 million people in the U.S. are at-risk for undiagnosed arrhythmias annually, according to iRhythm CEO and President Quentin Blackford, “underscoring how much opportunity remains” to reach individuals who could benefit from monitoring and earlier intervention.
Blackford told Fierce Healthcare the company is evolving from ambulatory cardiac monitoring toward “a broader cardiac monitoring and intelligence platform.”
“VitalConnect was compelling because its capabilities are highly complementary to ours,” Blackford said. “It broadens our cardiac monitoring capabilities, advances our multi-vitals strategy and expands our presence in hospital and remote care settings.”
Moreover, according to Blackford, the company sees an “opportunity to extend VitalConnect’s reach,” ultimately reaching more patients and customers.
“And when we think about quality of care, we think first about fit,” Blackford said. “Cardiac monitoring is not one size fits all. Different patients, clinical needs, workflows and care settings may call for different approaches. By bringing together complementary monitoring capabilities with a shared focus on high-quality data and clinically actionable information, we can give clinicians greater flexibility to choose the approach that best fits the patient and the care setting.”
Blackford said the companies’ “immediate focus” is ensuring continuity of care as the organizations come together.
“That work starts now, Blackford said. “We are aligning teams, engaging customers and preparing to expand access to VitalConnect’s offerings through iRhythm’s broader national reach.
VitalConnect CEO Peter Van Haur said in a statement joining iRhythm “creates an opportunity to extend the reach and impact” of its technology.
“By bringing together what our team has built with iRhythm’s scale, clinical expertise and customer reach, we believe we can accelerate the growth of our platform, expand access to our technology and create even greater value for clinicians and patients,” Van Haur said.