Analysts at Baird described the CAM patch as a long-term Holter wearable biosensor. Hillrom said in a news release out today that the BardyDx purchase complements Hillrom’s present cardiology portfolio of cardiac stress exercise, Holter and resting electrocardiography devices.
“This acquisition provides Hillrom with a highly strategic and differentiated diagnostic cardiology platform aligned with our vision of advancing connected care, as well as an attractive recurring, high-growth revenue stream and gross margin profile,” said Hillrom CEO John Groetelaars. “BardyDx brings a talented team with significant commercial, clinical and scientific expertise, and dedicated independent diagnostic testing facilities. We look forward to welcoming the 230 employees who will join us in our mission of enhancing outcomes for patients and their caregivers.”
Hillrom expects to close the transaction in the fiscal second quarter of 2021, subject to customary closing conditions.
Baird analyst Mike Polark said the deal appeared to be a “home run” — all things considered. “Certainly it continues to shift Hillrom’s portfolio toward higher-growth categories, but this specific bite comes with significant upfront cost. Execution on the integration will therefore need to be crisp to make this math work.”