iRhythm Technologies To Acquire VitalConnect For US$287M To Expand Cardiac Monitoring

By Marta Rybczynski

iRhythm is buying wearable biosensor company VitalConnect for about $287.5 million, adding mobile cardiac telemetry (MCT), multi-vitals monitoring and hospital-based monitoring to its cardiac diagnostics business. The deal is expected to close by the end of 2026.

“Ambulatory cardiac monitoring, including MCT, is not a one-size-fits all solution,” said iRhythm chief medical and scientific officer Mintu Turakhia. VitalConnect’s FDA-cleared platform includes MCT with monitoring for up to 30 days, as well as multi-vitals monitoring for hospital and remote-care settings.

The purchase price consists of about US$237.5 million in cash and US$50 million in iRhythm shares. The company also agreed to provide VitalConnect with up to US$30 million in interim working capital financing before the deal closes.

According to Evercore ISI analysts, iRhythm’s Zio AT currently serves about half of the roughly US$1-billion MCT market, with its 14-day wear period and feature limitations restricting where it can be used. VitalConnect’s VitalPatch can be worn for up to 30 days and includes features Zio AT lacks, which the analysts estimate could give iRhythm access to another roughly US$500 million of the market.

The acquisition comes while iRhythm is developing its own next-generation MCT product, which is still targeted for FDA clearance in the first half of 2027.

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Evercore analyst Vijay Kumar said that while iRhythm’s acquisition of VitalConnect’s MCT portfolio could be taken as a sign of lower confidence in, or a delay to, its internal MCT programme, the deal removes some of the uncertainty around iRhythm’s entry into MCT and brings its timeline forward by at least two years. iRhythm is continuing with its internal MCT programme, with management telling analysts that VitalPatch will be integrated first because it should be available sooner.

VitalConnect also takes iRhythm into areas outside its traditional ambulatory monitoring business. Management pointed to inpatient monitoring, hospital-to-home care and remote patient monitoring, while saying the acquisition brings forward its plans for multi-vitals sensing.

VitalConnect is generating about US$65 million in annual revenue, according to Evercore, with iRhythm expecting the acquisition to lift its revenue growth beginning in 2027. The deal was announced alongside second-quarter results, as iRhythm raised its 2026 revenue forecast to between US$880 million and US$890 million.