Terms of the deal for Rochester, N.Y.-based VirtualScopics include a $4.05-per-share tender for roughly 3 million VSCP shares. BioTelemetry, which is based in Malvern, Pa., is also due to offer $336.30 per share for VirtualScopics’ Series A and Series B stock $920.00 per share for VirtualScopics’ Series C-1 stock.
The tender offer, slated to launch April 11, is expected to close during the 2nd quarter, BioTelemetry said. That company also agreed to acquire any shares not initially tendered, in a 2nd-step merger at the same share price.
“We are excited to further expand our clinical research offerings with the addition of VirtualScopics’ imaging capabilities. This acquisition demonstrates our continued commitment to growing our clinical research business. VirtualScopics possesses an excellent scientific and operational reputation and we look forward to building upon their longstanding relationships with their customers. We would like to welcome VirtualScopics’ employees and customers to the BioTelemetry family and we look forward to the successful completion of the merger,” BioTelemetry president & CEO Joseph Capper said in prepared remarks.
“We believe BioTelemetry is the perfect partner for the future of VirtualScopics. They possess the scale and resources to accelerate our growth plan and lead the company into the future. This is an exciting time for everyone at VirtualScopics and we look forward to joining the BioTelemetry team,” added VirtualScopics CEO Eric Converse.
BioTelemetry, formed with the $11.6 million merger of CardioNet and Biotel in 2010, last year agreed to fork over $6.4 million to settle federal charges that CardioNet overbilled Medicare for unnecessary outpatient services.