CardioNet, Inc. (NASDAQ:BEAT), a leading wireless medical technology company with an initial focus on the diagnosis and monitoring of cardiac arrhythmias, announced today that the Company entered into a definitive merger agreement with Biotel, Inc. (BTEL.OB) ("Biotel") to acquire all of the outstanding shares of Biotel for $11 million, or $3.84 per share, before adjustments for working capital. In connection with the merger agreement, the parties entered into a settlement agreement to dismiss the outstanding litigation between them, which will be effective as of the close of the merger.
The acquisition of Biotel, and the addition of its Braemar subsidiary's wireless event monitor to the Company's product portfolio, enhances CardioNet's position in the field of wireless medicine. The acquisition is also expected to provide entry into the clinical services market through Biotel's subsidiary, Agility Centralized Research Services. Agility provides event, Holter and twelve-lead ECG monitoring services to the medical device and pharmaceutical industries as well as to contract research and academic research organizations worldwide.
Under the terms of the merger agreement, CardioNet will acquire all of the outstanding shares of Biotel common stock for cash. The transaction is subject to approval by Biotel's shareholders and other customary closing conditions. CardioNet and Biotel expect the transaction to close by December 31, 2010.
Joseph H. Capper, President and Chief Executive Officer of CardioNet, said, "We are pleased to announce this acquisition and the settlement of our litigation with Biotel. They are an excellent fit for CardioNet with their wireless event monitor and clinical research capabilities. We are also excited to welcome a management and development team which has a proven track record of bringing innovative products to market. We look forward to leveraging the strengths of both companies to advance wireless medicine for the benefit of physicians and patients."
Steven Springrose, President and Chief Executive Officer of Biotel, said "We are pleased to join CardioNet and its growth oriented, dynamic team. 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. Whether by expanding markets and distribution opportunities for Braemar products, increasing production volume, or growing Agility's 24/7 clinical research services, CardioNet adds the scale and expertise to move our team forward. Biotel and CardioNet are committed to the current Braemar and Agility customer base, and look forward to supplying them with a complete range of diagnostic equipment and services."
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