iRhythm Holdings agreed on 5 August, and announced on 6 August, to acquire VitalConnect, a maker of wearable biosensors and ambulatory cardiac monitoring systems, for about $287.5m.
Why iRhythm Holdings is buying VitalConnect
iRhythm said VitalConnect broadens its ambulatory cardiac monitoring range, including the large mobile cardiac telemetry category, and adds continuous multi-vitals monitoring for hospital and remote care.
“This combination represents a significant next step in iRhythm's evolution from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform”
Deal terms and financing
Consideration is about $237.5m in cash from iRhythm's balance sheet and about $50m in iRhythm stock. iRhythm agreed to pay a $9.0m reverse termination fee in certain circumstances.
Regulatory approvals and timing
The deal required Hart-Scott-Rodino clearance and VitalConnect stockholder approval; iRhythm later announced that it had completed the acquisition.
Market context
iRhythm said the deal would enhance revenue growth from 2027 while keeping its 15% adjusted EBITDA margin target for that year.
