Biotel Inc., an Eagan-based maker of remote patient-monitoring systems that record heart functions, has agreed to be acquired by CardioNet of the Philadelphia suburb of Conshohocken, Pa.
An earlier merger agreement between the two companies fell through. This time around CardioNet will acquire all of the outstanding shares of Biotel for $11 million, or $3.84 per share.
Shares of Biotel, a small public company that trades on the OTC Bulletin Board (ticker: BTEL.ob), trade sporadically. The shares closed Monday at $3.72, up $2.22.
The acquisition of Biotel and its subsidiaries will expand CardioNet's presence in the wireless medicine market.
Biotel has 45 employees; annual revenue for the year ended June 30 was $11 million. CardioNet, which has annual revenues of $130 million, trades on Nasdaq (ticker: BEAT). CardioNet is one of one of Biotel's largest customers.
In connection with the merger agreement, the parties agreed to dismiss outstanding litigation between them, effective as of the close of the merger.
Biotel had sued CardioNet, claiming that it had breached a merger agreement announced in April 2009 in which CardioNet agreed to acquire Biotel for approximately $14 million.
The current transaction is expected to close on Dec. 31.
