Zoll Medical announced today that it will acquire Itamar Medical (NSDQ:ITMR) for a total value of approximately $538 million.
Chelmsford, Massachusetts-based Zoll will acquire all outstanding shares of Itamar, a developer of non-invasive devices and solutions for the diagnosis of respiratory sleep disorders, at $31 per American Deposiory Share (ADS), a premium of 50.2% over the price of Itamar’s ADS on the Nasdaq market on Sept. 10.
According to a news release, both companies’ boards approved the deal, which remains subject to approval by shareholders of Itamar, regulatory approvals and other customary closing conditions. The companies expect the transaction to close by the end of 2021 and, once completed, they expect that Itamar’s principal operations will continue at its current location in Caesarea, Israel.
Itamar develops the FDA-cleared WatchPAT home sleep apnea device designed for sleep apnea diagnosis for patients and healthcare professionals in a home-based setting.
“Zoll Medical is committed to improving outcomes for underserved patients suffering from serious cardiopulmonary conditions,” Zoll CEO Jon Rennert said in the release. “It is currently estimated that 60% of cardiovascular patients suffer from some form of sleep apnea, and the majority of these patients go undiagnosed.2 The combination of Zoll Medical and Itamar Medical will help more patients receive diagnosis and treatment for sleep-disordered breathing. We look forward to helping strengthen the collaboration between the worlds of cardiology and sleep medicine.”
Itamar CFO Shy Basson noted in the release that the company believes the transaction “is in the best interest” of the company’s various stakeholders.
“We are excited to join forces with Zoll Medical, a leader in addressing the needs of cardiologists and their patients,” Itamar president & CEO Gilad Glick said. The integration of Itamar’s WatchPAT technology and digital health solution for sleep apnea with Zoll Medical’s commercial footprint will accelerate our mission of advancing home sleep medicine to benefit the population of undiagnosed and untreated patients.”