Aug 6 (Reuters) - 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 investments.
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 Inc.
Shares of CardioNet closed at $1.93 on Friday on the Nasdaq.