Aug 6 Heart monitoring services provider
CardioNet Inc said it would buy privately owned
Cardiocore Lab Inc for $23.5 million to expand into laboratory
services and reduce its reimbursement risks.
Cardiocore provides cardiac testing services to the
pharmaceutical industry and its revenue stream is not dependant
on health insurance reimbursements.
CardioNet, which has a market value of about $48 million,
said Cardiocore is expected to generate $19 million to $20
million in revenue for 2012.
As of March 31, CardioNet had $37.0 million in cash and
CardioNet, which did not specify how it would fund the deal,
said it may pay up to $3.5 million in common shares.
Several deals have been struck in the medical diagnostics
sector this year, including Agilent Technologies Inc's
$2.2 billion takeover of Danish cancer diagnostics firm Dako and
Hologic Inc's $3.75 billion acquisition of Gen-Probe
Shares of CardioNet closed at $1.93 on Friday on the Nasdaq.