ZOLL, Itamar merge to advance link between cardiology, sleep apnea

CHELMSFORD, Mass., and CAESAREA, Israel – ZOLL Medical Corp. has signed a definitive agreement to acquire all outstanding ordinary shares of Itamar Medical for about $538 million. 

Itamar Medical is focused on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory disorders, including the WatchPAT Home Sleep Apnea Device. 

“It is currently estimated that 60% of cardiovascular patients suffer from some form of sleep apnea, and the majority of these patients go undiagnosed,” said Jon Rennert, CEO of ZOLL Medical, which makes products for defibrillation and cardiac monitoring, among others. “The combination of ZOLL Medical and Itamar Medical will help more patients receive diagnosis and treatment for sleep-disordered breathing. We look forward to helping strengthen the collaboration between the worlds of cardiology and sleep medicine.” 

OSA is associated with increases in the incidence and progression of coronary heart disease, heart failure, stroke and atrial fibrillation; and CSA that’s associated with Cheyne-Stokes respiration predicts incident heart failure and atrial fibrillation, and strongly predicts mortality among patients with heart failure, according to a press release. 

Under the terms of the agreement, which has been unanimously approved by the boards of directors of the two companies, ZOLL Medical will acquire all outstanding ordinary shares of Itamar Medical for $31 per American Depository Share (ADS), or $1.03 (equivalent to approximately NIS 3.31) per ordinary share, in cash. The offer of $31 per ADS in cash represents a premium of 50.2% over the price of Itamar Medical’s ADS on the Nasdaq Stock Market on Sept. 10, 2021. 

ZOLL Medical’s acquisition of Itamar Medical is subject to approval by the shareholders of Itamar Medical, regulatory approvals and other customary closing conditions. Assuming typical regulatory and shareholder approval timeframes, the companies currently expect the transaction to close by the end of 2021. 

Once complete, Itamar Medical’s principal operations will continue at its current location in Caesarea, Israel, including its R&D and Digital Health Technology centers, as well as the production center.