iRhythm Completes VitalConnect Acquisition, Adding Mobile Cardiac Telemetry

iRhythm Holdings has completed its acquisition of VitalConnect, a privately held maker of wearable biosensors and ambulatory cardiac monitoring services, the company said in a press release filed with the SEC on Oct. 5.

The purchase consideration was $237.5 million in cash, subject to customary adjustments and funded from iRhythm's balance sheet, plus up to 423,334 shares of iRhythm stock issued in connection with closing. iRhythm also provided $10.0 million of working capital funding to VitalConnect between signing and closing, according to the release.

When iRhythm announced the agreement on Aug. 6, it valued the deal at total consideration of approximately $287.5 million, made up of about $237.5 million in cash and about $50 million in iRhythm common stock.

From Zio to mobile cardiac telemetry

iRhythm sells Zio wearable biosensors, which it combines with cloud-based data analytics and proprietary algorithms. VitalConnect adds mobile cardiac telemetry (MCT), multi-vitals monitoring and hospital monitoring capabilities. In its August announcement, iRhythm described VitalConnect's platform as FDA-cleared and spanning multiple cardiac monitoring modalities.

According to iRhythm, the VitalConnect platform offers up to 30-day patient monitoring, a "four-in-one" device design, flexible service models and a live look-in feature, and can monitor up to 11 physiological parameters. iRhythm said the addition extends its reach into inpatient, remote and hospital-to-home settings. The company also said its commercial scale, health system relationships, market access expertise and integrated clinical service capabilities are expected to accelerate VitalConnect's growth and expand customer access.

"Today marks an important milestone as iRhythm continues its evolution toward a broader cardiac monitoring and intelligence platform," said Quentin Blackford, iRhythm's president and CEO. "Together, we can offer clinicians greater choice, serve more patients and customers across the continuum of care, and deepen customer relationships."

Peter Van Haur, VitalConnect's CEO, said that by combining his company's technology with iRhythm's scale, clinical expertise and customer reach, "we believe we can accelerate the growth of our platform, expand access to our technology and create even greater value for clinicians and patients."

What iRhythm expects financially

iRhythm said the acquisition is expected to enhance its revenue growth rate beginning in 2027 while preserving its previously communicated adjusted EBITDA margin target of 15% for 2027. The company has not yet folded VitalConnect into its outlook: it said it will provide updated 2026 financial guidance, inclusive of VitalConnect, during its third-quarter earnings call on Nov. 5.

In August, iRhythm's chief medical and scientific officer, Mintu Turakhia, M.D., argued that ambulatory cardiac monitoring "is not a one-size-fits all solution," and said VitalConnect would add flexibility alongside Zio's uninterrupted monitoring approach. "Clinical needs, physician workflows, care settings and patient preferences vary, and no single monitoring model is optimal for every use case," he said at the time.

The release lists integration, retention of key VitalConnect employees, customers and partners, and changes in reimbursement and regulation among the risks that could cause results to differ from the company's expectations.