Zoll Medical isn’t resting when it comes to building out its sleep apnea portfolio, with a $538 million acquisition of Itamar Medical, the maker of at-home diagnostic products aimed at long-term heart complications.
The deal comes on the heels of an FDA approval for the latest version of Zoll’s Remede neurostimulation device for non-obstructive, central sleep apnea—a system it picked up through its purchase of Respicardia, made just a few months prior.
Itamar’s portfolio, meanwhile, includes an FDA-cleared, disposable apnea test worn on the fingers and wrist, which measures movement, snoring, heart rate and blood oxygen levels while a person sleeps.
“It is currently estimated that 60% of cardiovascular patients suffer from some form of sleep apnea, and the majority of these patients go undiagnosed,” Zoll CEO Jon Rennert said in a statement.
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Both obstructive and central sleep apnea—the latter being caused by errors in the breathing signals sent by the brain, instead of a physical blockage of the airway—have been linked with heart failure, as well as higher rates of stroke, atrial fibrillation and coronary artery disease.
The cash deal will see Zoll acquire all of Itamar’s outstanding shares, at a price of $31 per American Depository Share, or about a 50% premium over the company’s September 10 closing price. Since the transaction was announced, Itamar’s share price has jumped by about 45%, to just over $30. The acquisition is expected to close before the end of the year.
Once completed, the two companies expected to maintain Itamar’s current operations at its locations in Caesarea, Israel.