iRhythm (Nasdaq: IRTC) announced this week that it has completed its $287.5 million acquisition of cardiac monitoring tech company VitalConnect.
In a news release posted yesterday, iRhythm CEO Quentin Blackford described the deal close as an important milestone as the San Francisco–based company evolves past being a wearable heart patch monitor company to providing a broader cardiac monitoring and intelligence platform.
“VitalConnect brings complementary mobile cardiac telemetry (MCT), multi-vitals and monitoring capabilities to iRhythm’s established end-to-end cardiac monitoring service. Together, we can offer clinicians greater choice, serve more patients and customers across the continuum of care, and deepen customer relationships,” Blackford said.
VitalConnect CEO Peter Van Haur said: “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.”
The deal, first announced in August, included $237.5 million in cash from iRhythm’s balance sheet and up to 423,334 shares issued at closing (with the company previously estimating that the stock would bring in roughly $50 million). iRhythm also provided $10 million of working capital funding to VitalConnect between signing and closing.
iRhythm officials repeated their forecast that the acquisition will enhance the company’s revenue growth rate, while preserving its previously communicated adjusted EBITDA margin target of 15% for 2027.
