iRhythm Holdings has entered into a definitive agreement to acquire privately held wearable biosensor company VitalConnect for approximately $287.5 million, expanding its cardiac monitoring portfolio across ambulatory, inpatient and remote care settings.
The transaction consists of $237.5 million in cash, funded from iRhythm’s balance sheet, and $50 million in iRhythm common stock. iRhythm will also provide VitalConnect with up to $30 million in interim working capital financing before the acquisition closes.
VitalConnect’s technology will complement iRhythm’s Zio platform, which provides long-term continuous electrocardiogram monitoring for detecting cardiac arrhythmias. The acquisition will add mobile cardiac telemetry (MCT), inpatient monitoring and broader physiological monitoring capabilities to iRhythm’s existing offering.
VitalConnect operates an FDA-cleared platform incorporating a 4-in-1 wearable biosensor designed for continuous monitoring for up to 30 days. The technology can track as many as 11 physiological parameters, enabling monitoring across inpatient, outpatient and hospital-to-home environments.
The combination is intended to enable iRhythm to address a wider range of patient acuity levels and monitoring requirements. Alongside longer-term ambulatory ECG monitoring, the combined portfolio will cover applications including short-term Holter monitoring, MCT with live monitoring capabilities, acute inpatient telemetry, post-surgical recovery and continuous remote patient monitoring.
“This combination represents a significant next step in iRhythm’s evolution from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform,” said Quentin Blackford, President and CEO of iRhythm. “VitalConnect adds complementary mobile cardiac telemetry, multi-vitals and hospital monitoring capabilities that complement Zio and meaningfully expand the categories of patients and customers we can serve.”
The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close by the end of 2026. iRhythm expects the acquisition to contribute to its revenue growth rate beginning in 2027 while maintaining its targeted adjusted EBITDA margin of 15% for that year.
By incorporating VitalConnect’s monitoring capabilities into its existing infrastructure and commercial operations, iRhythm is extending its focus from ambulatory arrhythmia detection toward cardiac monitoring across multiple care settings.
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