Hillrom to acquire cardiac-monitoring-device maker Bardy Diagnostics for $375M

Hillrom Holdings Inc. is acquiring Seattle-based cardiac-monitoring-device maker Bardy Diagnostics Inc. for $375 million and future potential milestones payments.

Chicago-based medical technology company Hillrom said it is also acquiring net operating losses worth more than $20 million of the privately held company, which are expected to result in future tax benefits.

BardyDx, which books annualized revenue of about $30 million, has developed a product called Carnation Ambulatory Monitor patch to identify specific arrhythmias or rate of heartbeat.

The acquisition would complement Hillrom's current cardiology portfolio of cardiac stress exercise, Holter and resting electrocardiography devices, the company said in a Jan. 19 press release.

Hillrom expects the transaction to be dilutive to its fiscal 2021 adjusted earnings by about 10 cents per share and does not anticipate the acquisition to have an impact on its fiscal 2021 financial guidance.

The company plans to finance the acquisition through cash on hand and borrowings under its existing credit facilities.

Hillrom expects to close the deal in the fiscal second quarter of 2021, subject to closing conditions.

In September 2020, Hillrom had begun to reduce its workforce as part of a restructuring to focus on growth platforms and to improve operations and cost structure.