Wireless medical technology company BioTelemetry is acquiring Telcare Medical Supply to increase its presence in the growing digital population health management market. As an early stage technology-enabled service platform, Telcare was the first company to receive FDA clearance for a cellular-enabled Blood Glucose Monitoring (BGM) system. This wireless BGM system transmits real-time results to a cloud-based analytical engine, which synthesizes the data, monitors trends and provides caregivers with critical information about the patients' health status and the potential need to intervene.
The deal includes an upfront consideration of $7 million in cash with the potential for additional performance-based earn-outs of up to $5 million in cash. Telcare is expected to generate over $5 million in revenue on an annualized basis and be near breakeven by the end of 2017.
"BioTelemetry is one of the few companies to successfully scale a profitable digital health business. We have a tremendous core competency in real-time remote data collection, analysis, storage and distribution," Joseph H. Capper, President and CEO of BioTelemetry, said in a statement. "As we detailed on our last earnings call, we see digital population health management as a natural fit to leverage our expertise and existing partnerships to improve outcomes and reduce costs in some of the more widespread chronic conditions. We chose the diabetes market as our first major digital population health initiative because of its significant overall burden on the healthcare system, with estimated direct annual costs in the U.S. of over $245 billion."