Pharos Capital Group has acquired a majority stake in New Jersey-based RythMedix, a manufacturer and provider of remote cardiac monitoring systems and related services.
Pharos is a middle-market private equity firm based in Dallas and Nashville.
“We’re impressed with RhythMedix’s continued focus on driving innovation in the cardiac monitoring market, as evidenced by the RhythmStar platform’s ability to give providers near real-time notifications, which allow for life-changing interventions for patients suffering from an event, while also lowering the cost of care by reducing unnecessary hospital admissions for patients who show no abnormalities,” Pharos Partner Joel Goldberg said in a statement.
“Pharos sees attractive opportunities to grow the company both organically and through acquisitions, and we look forward to working with RhythMedix’s esteemed co-founders, Brian Pike and Stan Biletsky, to continue providing convenient, cost-effective care to people across the country,” Goldberg added.
RhythMedix’s management team is reinvesting alongside Pharos and will remain with the company in their current roles, the companies said.
Dan Delaney, former CEO of TechLab, a previous Pharos portfolio company, will represent Pharos on the board of RhythMedix, Pharos said.
Terms of the transaction were not disclosed.
Aiming to lower costs, improve outcomes, and expand access
Based in Mt. Laurel, New Jersey, RhythMedix was founded in 2013 to improve the remote cardiac monitoring experience for both patients and clinicians.
Its proprietary RhythmStar device is the first wearable cardiac ECG monitor with built-in 4G cellular connection, providing faster, more comfortable, and overall better arrhythmia detection without the need for additional devices, the company said.
“We’re pleased to partner with Pharos, a firm with a demonstrated track record of success and an exclusive focus on providing access to affordable healthcare while simultaneously improving patient outcomes,” RhythMedix CEO Pike said in a statement. “With its support, RhythMedix becomes a stronger, more capable company that will achieve higher growth by capturing additional market share, increasing R&D efforts, and expanding into adjacent remote patient monitoring modalities. The combination of Pharos’ financial and industry expertise and our advanced technology positions RhythMedix to become an industry stalwart in the remote patient monitoring market.”
Pharos said this deal marks the sixth investment from its latest flagship fund, Pharos Capital Partners IV LP, investing alongside its parallel fund, Pharos Capital Partners IV-A LP, a licensed Rural Business Investment company.
Pharos said the funds will continue its mission to promoted value-based care by lowering costs, improving outcomes, and expanding access, particularly within underserved communities.
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