Rising incidence of cardiovascular diseases and the launch of advanced products by prominent market players are driving the market. Per a report by MarketsandMarkets, the global cardiac monitoring and cardiac rhythm management devices market was valued at $22.1 billion in 2020 and is projected to reach $26.8 billion by 2025, growing at a CAGR of 4.0%. This will complement Hill-Rom’s current cardiology portfolio of cardiac stress exercise, Holter and resting electrocardiography devices. Through this planned acquisition, Hill-Rom will obtain Bardy Diagnostics’ differentiated, wearable bio-sensing technology, the Carnation Ambulatory Monitor (CAM patch) that has been developed for superior clinical accuracy, patient-comfort as well as outstanding diagnostic yield. The buyout will bring an advanced diagnostic cardiology platform to Hill-Rom along with a team of substantial clinical and scientific experts and independent diagnostic testing facilities that will enable the company to enhance patient’s outcome. The transaction is expected to be increasingly accretive after the first year, and generate a 10% return on invested capital by the fifth year. The company expects the buyout to be dilutive to its fiscal 2021 adjusted earnings by about 10 cents per share, but does not expect an impact on its previously issued financial outlook. Additionally, the company is also acquiring net operating losses worth $20 million, which are anticipated to result in future tax benefits. Per the terms of the agreement, Hill-Rom will acquire Bardy Diagnostics for $375 million in cash plus future potential payments post achievement of certain commercial milestones. advancing patient mobility, wound care and prevention, surgical, safety and efficiency, clinical workflow solutions, and respiratory help. It is important to mention here that the company aggressively pursues acquisitions to accelerate growth in five key clinical focus areas, viz. With this buyout, Hill-Rom continues to strengthen its merger and acquisition (M&A) pipeline. Notably, the agreement is expected to close in the fiscal second quarter of 2021, subject to customary closing conditions.
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