Medtronic announced on 12 August the closing of the acquisition of Cardiocom, in an all-cash transaction valued at US$200 million. Medtronic expects the net impact from this transaction to be neutral to fiscal year 2014 earnings.
“With broad healthcare reform initiatives focused on growing economic challenges, healthcare systems in every region of the world are striving to continuously improve outcomes, increase access, save cost, and improve the efficiency of healthcare delivery. The acquisition of Cardiocom is one step we are taking toward providing a combination of products and solutions that can help address those challenges,” said Omar Ishrak, chairman and CEO of Medtronic. “With our first integration of this technology focused on heart failure, we will have the unique opportunity to combine our leading diagnostics, therapies and patient management solutions. This combination will strengthen our ability to partner with providers and payers to help them reduce cost and improve quality.”
Cardiocom’s products and services include remote monitoring and patient-centered software to enable efficient care coordination and specialised telehealth nurse support. These integrated solutions are aimed at reporting real-time patient data and proactive patient intervention programs to payers and healthcare providers based on accepted guidelines and evidenced-based protocols, which can result in better outcomes at a lower cost.
“We look forward to joining Medtronic as part of a combined portfolio of products and solutions that can positively impact outcomes for patients and bring value to our customers,” said Daniel L Cosentino, vice president and general manager of Cardiocom at Medtronic, and former CEO of Cardiocom. “The synergy between our technologies and Medtronic’s large presence with hospitals, physicians and payers will dramatically increase our distribution channels for the Cardiocom patient management technologies and services. Our approach to care coordination and telehealth services has allowed customers to reduce the overall cost of care, primarily through reduced hospitalisations.”