iRhythm to Acquire VitalConnect for Approximately $288Mn

The transaction includes approximately $237.5 million in cash and $50 million in iRhythm common stock, according to the companies.

San Francisco-based cardiac monitoring company iRhythm has agreed to acquire rival VitalConnect for approximately $287.5 million, in a deal that will expand iRhythm’s portfolio beyond ambulatory cardiac monitoring into mobile cardiac telemetry, multi-vital and hospital monitoring.

The transaction includes approximately $237.5 million in cash and $50 million in iRhythm common stock, according to the companies.

San Jose-based VitalConnect develops the VitalPatch, an FDA-approved wearable biosensor that uses artificial intelligence-enabled algorithms to provide real-time electrocardiogram (ECG) data along with other vital signs. The device transmits patient data through the cloud, allowing clinicians to access information without waiting for the wearable to be returned by mail.

iRhythm said the acquisition will immediately expand its presence in the cardiac monitoring market and add new capabilities to its existing Zio platform.

“This combination represents a significant next step in iRhythm's evolution from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform,” said Quentin Blackford, president and CEO of iRhythm. He added that VitalConnect’s mobile cardiac telemetry, multi-vital and hospital monitoring capabilities would broaden the range of patients and customers served by the company.

VitalConnect CEO Peter Van Haur said the transaction would combine the company’s biosensor platform, AI-enabled algorithms and workflows with iRhythm’s commercial infrastructure.

The companies said the combined portfolio is expected to cover ambulatory cardiac monitoring, inpatient monitoring and hospital-to-home care, although the transaction remains subject to customary closing conditions.

The proposed acquisition comes as iRhythm addresses a cybersecurity incident disclosed in June involving proprietary company data. At the time, iRhythm said its core medical devices were not affected by the incident. The company has not disclosed the extent of any data accessed or whether a ransom was paid.

With the VitalConnect transaction, iRhythm is seeking to broaden its cardiac monitoring offerings across both ambulatory and hospital settings while adding wearable, cloud-based and AI-enabled monitoring capabilities to its portfolio.

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