G Medical Innovations Holdings Ltd (ASX:GMV) has executed an agreement to acquire all of the outstanding membership interest of Telerhythmics LLC, a US-based cardiac diagnostic monitoring services provider.
The agreement was made by G Medical’s wholly-owned Delaware-incorporated subsidiary G Medical Innovations USA Inc which will acquire the Telerhythmics membership interest from NASDAQ-listed imaging technology company Digirad Corp (NASDAQ:DRAD) for an upfront payment of US$1.95 million.
G Medical chief executive officer Yacov Geva said: “Acquiring Telerhythmics further strengthens our company’s US footprint as we further focus our efforts to become a leader in complete (end-to-end) and comprehensive vital signs medical monitoring and cardiac diagnostic services across the US.
“Telerhythmics brings additional payer contracts, clinical and commercial scalability, access to current monitoring technologies and an existing platform to launch our proprietary medical devices with the aim to further grow our market share in this important area of digital health delivery.”
Tennessee-based Telerhythmics is a Medicare and Medicaid-designated independent diagnostic testing facility (IDTF) and reported record revenue of US$3.174 million for the first nine months of 2018.
The company provides doctors and physicians with arrhythmia monitoring services including mobile cardiac telemetry, cardiac event monitoring, Holter monitoring and pacemaker analysis.
G Medical’s acquisition of Telerhythmics, along with its acquisition of Cardiostaff Diagnostic Services Inc last year, will create a sizable player in the US cardiac diagnostic monitoring space.
The acquisition will substantially increase insurance coverage and create a distinct competitive advantage, providing G Medical with about 100 commercial payor agreements across local, regional and national markets.
G Medical will also gain access to several large health systems including Baptist, Ochsner and HCA, and also to existing agreements in place with large insurance providers such as Blue Cross Blue Shield.
Telerhythmics was founded in 1996 and its business is complementary to G Medical’s existing infrastructure and operations, due to the Cardiostaff acquisition and further increases in G Medical’s nationwide footprint.
G Medical views the cardiac diagnostic and remote vital signs monitoring healthcare services as a rapidly growing industry in the US and has positioned itself to become an emerging leader in the e-health and vital signs monitoring space.
The mobile and e-health company is continuing preparations to dual-list on the NASDAQ Stock Exchange.