BioTelemetry, Inc. (NASDAQ:BEAT) Buys Out Under Court Supervision
Specialized medical applications provider BioTelemetry, Inc. (NASDAQ:BEAT) announced on 3rd February that it had secured a significant legal victory in its patent litigation with Mednet Healthcare Technologies, Inc. As part of the settlement, all Mednet Healthcare subsidiaries “Heart-Care Corporation of America, Universal Medical Inc., and Universal Medical Laboratory, Inc.” which were listed as defendants in the patent infringement case have agreed to enter into a consent agreement, whereby it was declared that all the named defendants had infringed on five patents held by BioTelemetry, Inc. (NASDAQ:BEAT) and its various subsidiaries including, Braemar Manufacturing.
Patent Fight On Since 2012
The long running lawsuit which was first filed in May 2012 in the .S. District Court for the Eastern District of Pennsylvania had contended that five patents used in the “Mobile Cardiac Outpatient Telemetry” unit manufactured by BioTelemetry, Inc. (NASDAQ:BEAT) and its 100 percent owned subsidiary Braemar Manufacturing had been infringed upon by Mednet and its subs.
Terms of Settlement
As part of the legal settlement which got announced yesterday, BioTelemetry, Inc. (NASDAQ:BEAT) has agreed to acquire the entire outstanding shares of Mednet Healthcare Technologies, Inc. The leveraged deal will involve the $229 million market capped BioTelemetry shelling out close to $16 million towards the outright purchase of outstanding stock. $5.5 million will be paid out by the acquiring company in addition to paying $0.8 million worth common stock issued by the firm. It will also take on to its books the close to $9.7 million debt that had accumulated on the books of Mednet Healthcare Technologies, Inc.
Expressing his happiness at the favourable conclusion of the patent fight and its subsequent settlement agreement, BioTelemetry, Inc. (NASDAQ:BEAT) President and Chief Executive Officer Joseph H. Capper has been quoted to have said that, “I believe the acquisition of Mednet is the best possible outcome for all involved. While an unorthodox path to such a combination, the company will benefit from Mednet’s more than $25 million in annual revenue and its reputation for world class customer service. We expect the acquisition to be accretive, adding $4.0 to $5.0 million of EBITDA post-integration.”