Apr. 3--Biotel, a medical technology company in Eagan, has been acquired in a $14 million deal that will allow it to grow at a faster pace.

Biotel manufactures external heart monitors that search patients for heart arrhythmias. Last year, it launched its first wireless monitor.

Its acquirer -- Pennsylvania-based CardioNet -- said the deal allows it to expand its existing cardiac arrhythmia monitoring business and to widen its portfolio to products such as Biotel's newly FDA-approved "next generation" wireless monitor.

The deal also allows CardioNet to launch into the clinical research services business. As part of the acquisition, CardioNet is acquiring Biotel subsidiary Agility Centralized Research Services, based in Chicago. Agility provides heart-monitoring services to the medical device and pharmaceutical industries, as well as to contract and academic research organizations worldwide.

Steven Springrose, president and CEO of Biotel, said the two companies represent a strong strategic match and an opportunity for Biotel to join an established, high-growth company. "We broaden the range of technologies that CardioNet will control."

Biotel, with a manufacturing plant and research-and-development facility in Eagan, will operate as a wholly owned subsidiary of CardioNet. "We're expecting Biotel will grow and that we will be increasing what really is a whole new range of capabilities," Springrose said. "This wireless era of reporting medical

information is just beginning."

CardioNet had 2008 revenue of $120 million and 800 employees. Biotel employs 50 people. It posted $11.5 million in revenue for the 2008 fiscal year ended June 30.

Under terms of the merger agreement, CardioNet is paying $4.82 per share in cash for all outstanding shares of Biotel common stock. Shares of Biotel closed at $4.40 per share on Thursday, up $2.62.

Both boards of directors have approved the deal. The transaction is subject to approval from Biotel's shareholders.

Julie Forster can be reached at 651-228-5189.

-----

To see more of the Pioneer Press, or to subscribe to the newspaper, go to http://www.twincities.com.

Copyright (c) 2009, Pioneer Press, St. Paul, Minn.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NASDAQ-OTCBB:BTEL, NASDAQ-NMS:BEAT,

A service of YellowBrix, Inc.