BioTelemetry prevails in court, acquires rival
MALVERN, Pa. (AP) — Shares of wireless medical device maker BioTelemetry jumped Monday after the company announced it had prevailed in court — and subsequently acquired — a rival wireless technology company.
The maker of remote heart monitors said it won a key victory in a patent dispute over its technology with Mednet Healthcare Technologies. Mednet and its subsidiaries entered a consent judgment, declaring that they had infringed five patents owned by Biotelemetry.
Following the judgment, Biotelemetry acquired all outstanding shares of its Melville, N.Y.-based rival for $6.3 million in cash and stock and the assumption of $9.7 million in debt.
"I believe the acquisition of Mednet is the best possible outcome for all involved," said Biotelemetry CEO Joseph Capper, in a statement. "While an unorthodox path to such a combination, the company will benefit from Mednet's more than $25 million in annual revenue."
Shares of BioTelemetry Inc. rose $1.61, or 22 percent, to $8.90.