<p>Dutch health technology company Philips is set to buy US cardiac diagnostics and monitoring firm BioTelemetry in a $2.8 billion deal that will strengthen its offering of remote care products.</p>.<p>Philips said on Friday it would pay $72 per outstanding BioTelemetry share in cash, in an offer supported by the US company's board at a 16.5% premium to the stock's closing price on Thursday.</p>.<p>Philips shares gained 2% in early trading, making them one of the biggest risers on Amsterdam's blue chip AEX-index.</p>.<p>BioTelemetry, which has around 1,900 employees, primarily focuses on the diagnosis and remote monitoring of heart rhythm disorders, a business that represented 85% of its $439 million sales last year.</p>.<p>It will become part of Philips' connected care business, which offers a range of platforms and devices that allow patients to stay at home while being monitored.</p>.<p>Philips banks on rising life expectancy and associated chronic diseases to make this business a pillar for future growth. This year the Covid-19 pandemic led to a surge in demand for remote monitoring solutions.</p>.<p>"We have always been very optimistic about connected care," Chief Executive Frans van Houten told reporters.</p>.<p>"With Covid we have seen an acceleration of the demand and we think this acquisition fits perfectly in this era where remote patient monitoring will become ever more important."</p>.<p>Once a sprawling conglomerate, Philips has become purely focused on healthcare after spinning off its lighting and consumer electronics divisions in recent years.</p>.<p>Philips said BioTelemetry was expected to deliver double-digit growth and improve its adjusted earnings before interest, tax and amortisation (EBITA) margin to more than 20% by 2025.</p>.<p>The company, which expects to complete the purchase in the first quarter of 2021, said the acquisition would have boost its own sales growth and profit margin from next year.</p>
<p>Dutch health technology company Philips is set to buy US cardiac diagnostics and monitoring firm BioTelemetry in a $2.8 billion deal that will strengthen its offering of remote care products.</p>.<p>Philips said on Friday it would pay $72 per outstanding BioTelemetry share in cash, in an offer supported by the US company's board at a 16.5% premium to the stock's closing price on Thursday.</p>.<p>Philips shares gained 2% in early trading, making them one of the biggest risers on Amsterdam's blue chip AEX-index.</p>.<p>BioTelemetry, which has around 1,900 employees, primarily focuses on the diagnosis and remote monitoring of heart rhythm disorders, a business that represented 85% of its $439 million sales last year.</p>.<p>It will become part of Philips' connected care business, which offers a range of platforms and devices that allow patients to stay at home while being monitored.</p>.<p>Philips banks on rising life expectancy and associated chronic diseases to make this business a pillar for future growth. This year the Covid-19 pandemic led to a surge in demand for remote monitoring solutions.</p>.<p>"We have always been very optimistic about connected care," Chief Executive Frans van Houten told reporters.</p>.<p>"With Covid we have seen an acceleration of the demand and we think this acquisition fits perfectly in this era where remote patient monitoring will become ever more important."</p>.<p>Once a sprawling conglomerate, Philips has become purely focused on healthcare after spinning off its lighting and consumer electronics divisions in recent years.</p>.<p>Philips said BioTelemetry was expected to deliver double-digit growth and improve its adjusted earnings before interest, tax and amortisation (EBITA) margin to more than 20% by 2025.</p>.<p>The company, which expects to complete the purchase in the first quarter of 2021, said the acquisition would have boost its own sales growth and profit margin from next year.</p>