The healthcare sector has been witnessing acquisitions since
the beginning of 2014.
) closed the acquisition of Pivot Medical, Inc. in March while
ThermoFisher Scientific, Inc.
) completed that of Life Technologies Corporation in
Late last week,
) wholly-owned subsidiary, Digirad Imaging Solutions, Inc.
acquired Telerhythmics, LLC.
The acquisition was done with an upfront payment of about $3.6
million - this includes a $3.47 million cash payment and the
assumption of approximately $131,000 in debt. Additionally,
Digirad may be liable to pay up to $501,000 more, contingent upon
meeting certain financial targets like EBITDA over a three-year
horizon. The EBITDA targets would be measured at the end of each
fiscal year, Dec 31, 2014 onwards.
Memphis, TN-based, privately-held Telerhythmics is a 24-hour
cardiac event monitoring service that caters to the eastern
region of the U.S. It provides monitoring services on an
outsourced basis to hospitals and physician offices.
Telerhythmics had an annual turnover of approximately $5.6
million in 2013.
The deal is expected to be accretive to Digirad on an EBITDA
basis. It is expected to generate approximately $350,000 of
EBITDA in the first twelve months after the acquisition followed
by approximately $800,000 of EBITDA annually.
Digirad Imaging Solutions forms an integral part of Digirad
contributing 75.3% to total revenues in 2013.
The acquisition will allow Digirad to expand its geographical
presence besides diversifying the services offered by Digirad
A stock that warrants a look in the medical information
systems space is
Computer Programs & Systems Inc.
) with a Zacks Rank #1 (Strong Buy).
COMPUTER PRGRMS (CPSI): Free Stock Analysis
STRYKER CORP (SYK): Free Stock Analysis
THERMO FISHER (TMO): Free Stock Analysis
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