Kyma Medical Technologies, a developer of remote cardiac monitoring devices, is entertaining a $35 million acquisition offer from an unnamed suitor, according to a regulatory filing by Elron Electronic Industries (TASE:ELRN), which owns a stake in Kyma.

Kyma told Elron that it inked a non-binding letter of intent with “a non-affiliated 3rd party regarding a potential acquisition of Kyma” for $35 million in cash, plus a 4½-year earnout schedule for an unspecified series of revenue-based milestones, according to the filing. The deal would also include sales royalties for 5½ years, Elron said, noting that it would net about $7 million if the deal is consummated.

“The transaction is pending the continuing due diligence of the potential acquirer and the execution of a definitive agreement by the parties and is subject to customary regulatory and corporate approvals. There is no assurance as to the execution of a definitive agreement, its terms, the completion of the transaction and the timing thereof,” said Elron, an Israeli holding company focused on the medical device industry.

Kfar Saba, Israel-based Kyma is developing a remote patient monitoring device for congestive heart failure patients called the µ-Cor, that’s designed to use microwave radar to monitor the level of fluid in the lungs. The device also collects data on heart rate, breath rate and posture, then transmits it to a Kyma service center, where it’s analyzed “by experienced and trained professionals using sophisticated algorithms to determine patient-specific trends,” according to Kyma’s website.

“Once a potential deterioration in the patient’s condition is identified, a notification is sent to the medical team,” according to Kyma.

Kyma said in January that µ-Cor won CE Mark approval in the European Union for monitoring thoracic fluid content, ECG, heart rate, respiratory rate, activity and body posture. The company is also working on an implantable, subcutaneous version of the device, according to founder and ex-CEO Assaf Bernstein’s LinkedIn page.

Current president & CEO Murali Srivathsa has a long medical device pedigree dating back to 1999, according to his LinkedIn page, when he joined Guidant. Srivathsa worked at Guidant until its 2006 acquisition by Boston, then stayed on there until 2008, when he jumped ship to become vice president of sales, marketing & customer operations at wearable sensor maker Corventis. Medtronic (NYSE:MDT) acquired Corventis for a reported $150 million last year.