AcquisitionsAug 6, 2026, 04:26 PM
iRhythm to Acquire VitalConnect for $287.5M
AI Summary
iRhythm Holdings announced a definitive agreement to acquire Vital Connect, Inc. for approximately $287.5 million, expanding its cardiac monitoring platform and addressable market. The company also reported strong second-quarter 2026 financial results, with revenue up 20.1% to $224.2 million and a significant improvement in net loss and adjusted EBITDA. Additionally, iRhythm settled patent litigation with Baxter, agreeing to a $50 million payment and cross-licensing of patents, and raised its full-year 2026 financial guidance.
Key Highlights
- Acquiring Vital Connect for approximately $287.5 million, comprising $237.5 million cash and $50 million stock.
- Q2 2026 revenue increased 20.1% year-over-year to $224.2 million.
- Q2 2026 net loss improved to $0.4 million from $14.2 million in Q2 2025.
- Q2 2026 adjusted EBITDA was $43.3 million, with a 19.3% margin, up 1090 basis points.
- Increased fiscal year 2026 revenue guidance to $880 million to $890 million.
- Increased fiscal year 2026 adjusted EBITDA margin guidance to 13.0% to 14.0%.
- Settled patent litigation with Baxter, involving a $50 million payment and cross-licensing agreement.
- Achieved FDA clearance for third-generation algorithm, projecting $100 million in cumulative cost savings.
Price Impact
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