UK -based telehealth and teleservices provider, Tunstall Healthcare Group has entered into a definitive agreement to acquire American Medical Alert (AMAC).
The transaction is being fully backed by the majority share holder of Tunstall and all the directors and officers of AMAC who collectively hold 26% shares in AMAC and have also agreed to vote for the transaction, which is likely to be sealed by the end of 2011.
According to the transaction, Tunstall will buy all the outstanding common shares for cash. This price is a 50% premium on AMAC’s closing share price as on September 22, 2011. Apart from this, Tunstall will also acquire one Contingent Payment Right for every share, which will provide the holder of the common share with contingent cash payment if AMAC’s share in Lifecomm joint venture or Tunstall is sold.
According to Jack Rhian, President and Chief Executive Officer of AMAC, the acquisition will expose the company to Tunstall’s wide product line, global resources and top class engineering. This will also help the company in enhancing its own product line in the areas of patient monitoring and call centre systems. AMAC has two business divisions, namely Health and Safety monitoring systems, which includes solutions such as medication management, personal emergency response system, mobile personal emergency response system and telehealth and Telephone Based Communication Services, which specialise in providing communication services to the pharmaceutical and healthcare industry, doctors and other healthcare entities. After the acquisition, AMAC will be a private company fully owned by Tunstall’s affiliate.
Source: http://www.tunstall.co.uk