EAGAN, Minn., Nov. 8, 2010 /PRNewswire-FirstCall/ -- CardioNet, Inc. (Nasdaq: BEAT), a leading wireless medical technology company with an initial focus on the diagnosis and monitoring of cardiac arrhythmias, announced today that the Company entered into a definitive merger agreement with Biotel, Inc. (OTC Bulletin Board: BTEL) ("Biotel") to acquire all of the outstanding shares of Biotel for $11 million, or $3.84 per share, before adjustments for working capital. In connection with the merger agreement, the parties entered into a settlement agreement to dismiss the outstanding litigation between them, which will be effective as of the close of the merger.
The acquisition of Biotel, and the addition of its Braemar subsidiary's wireless event monitor to the Company's product portfolio, enhances CardioNet's position in the field of wireless medicine. The acquisition is also expected to provide entry into the clinical services market through Biotel's subsidiary, Agility Centralized Research Services. Agility provides event, Holter and twelve-lead ECG monitoring services to the medical device and pharmaceutical industries as well as to contract research and academic research organizations worldwide.
Under the terms of the merger agreement, CardioNet will acquire all of the outstanding shares of Biotel common stock for cash. The transaction is subject to approval by Biotel's shareholders and other customary closing conditions. CardioNet and Biotel expect the transaction to close by December 31, 2010.
Joseph H. Capper, President and Chief Executive Officer of CardioNet, said, "We are pleased to announce this acquisition and the settlement of our litigation with Biotel. They are an excellent fit for CardioNet with their wireless event moni