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Healthcare Stock in Focus: BioTelemetry, Inc. (NASDAQ:BEAT)

On Thursday, BioTelemetry, Inc. (NASDAQ:BEAT) closed at $11.84 with trading volume of 96,992 shares. The company fell -0.50% with market capitalization of 324.28M. During the year the lowest point at which share traded is $7.86 and hit the highest point at $16.96.

BioTelemetry, Inc. (BEAT), the leading wireless medical technology company focused on the delivery of health information to improve quality of life and reduce cost of care, and VirtualScopics, Inc. (VSCP), a leading provider of clinical trial imaging solutions, declared today that the two companies have reached a definitive agreement whereby BioTelemetry will acquire VirtualScopics.

BioTelemetry will initiate an all cash tender offer for all outstanding common and preferred shares of VirtualScopics.  In the tender offer, BioTelemetry will offer shareholders $4.050 per share for VirtualScopics’ common stock, $336.3 per share for VirtualScopics’ Series A and Series B Convertible Preferred Stock and $920.0 per share for VirtualScopics’ Series C-1 Convertible Preferred Stock.  The total purchase consideration is about $15.50 million.

The tender offer is predictable to commence on or about April 11, 2016, and will be open for a minimum of 20 business days.  VirtualScopics’ Board has approved the transaction and has agreed to unanimously recommend to its stockholders that they tender their shares of VirtualScopics’ common and preferred stock in the tender offer.  Stockholders holding about 20% of VirtualScopics’ current outstanding voting stock have agreed, among other things, to tender their voting stock following the tender offer.

The closing of the transaction is conditioned on the tender and acceptance of at least a majority of the outstanding voting stock and a majority of the Series C-1 Convertible Preferred Stock in addition to other customary conditions.  BioTelemetry will get hold of any VirtualScopics’ shares not purchased in the tender offer in a second-step merger at the same per-share price paid in the tender offer.  The closing of the transaction is predictable to occur in the second quarter of 2016.

VirtualScopics today reports revenue of $12.70 million for 2015.  The Company anticipates to release its full 2015 financial results in its annual report on Form 10-K later today.

Joseph H. Capper, President and Chief Executive Officer of BioTelemetry, commented: “We are anxious to further expand our clinical research offerings with the addition of VirtualScopics’ imaging capabilities.  This acquisition demonstrates our continued commitment to growing our clinical research business.  VirtualScopics possesses an excellent scientific and operational reputation and we look forward to building upon their longstanding relationships with their customers.  We would like to welcome VirtualScopics’ employees and customers to the BioTelemetry family and we look forward to the successful completion of the merger.”

Greenberg Traurig, LLP acted as legal counsel to BioTelemetry.  Oppenheimer & Co. acted as exclusive financial advisor and Woods Oviatt Gilman LLP acted as legal counsel to VirtualScopics.

Technical Analysis of BioTelemetry, Inc. (NASDAQ:BEAT):

The company employs 938 people, over the last 12 months has generated revenue of $178.50M and has a net income of $7.40M. The firm’s operating margin is 5.30 percent and net profit margin 4.10 percent. The latest closing price of $11.84 was up 6.02% from the 50-day moving average.

Analysts’ mean recommendation for BioTelemetry, Inc. (NASDAQ:BEAT) is 2 (Buy).

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