Tunstall Healthcare to Acquire American Medical Alert for $82.3 Million
Healthcare technology company Tunstall Healthcare Group agreed to acquire American Medical Alert Corp. (NASDAQ:AMAC), a provider of remote healthcare monitoring and communication services, for $82.3 million.
As part of the deal, Tunstall purchased all of AMACs outstanding common shares for $8.55 per share in cash, a 50% premium over AMACs share price on Thursday. The companies expect the transaction to be completed by the end of the fourth quarter, at which time AMAC will become a private company under Tunstall.
AMAC reported last month a 78% decline in second-quarter profits despite increased revenue.
"We believe the decision by the board to merge with Tunstall is good for shareholders, employees and our customers," Jack Rhian, AMACs president and chief executive, said in a statement. "By joining with Tunstall, AMAC will have unprecedented access to its world class engineering and product portfolio as well as its global operating resources. This transaction will allow AMAC to rapidly accelerate the scope of our portfolio in both remote patient monitoring and call center solutions thereby benefiting our entire customer base."
Tunstalls acquisition is part of its ambitious growth plans, CEO Gil Baldwin said.
New York-based AMAC develops remote patient monitoring devices and personal emergency response systems. A second arm of the company is responsible for a contact center that provides communication services for groups in the healthcare industry, including hospitals and physician groups.
Shares of American Medical Alert were up $2.63, or 46%, to reach $8.32 per share in late morning trading.