Last week Salt Lake City-based mobile personal emergency response (MPERS) provider ActiveCare inked a deal to acquire 4G Biometrics, a company that offers near real time blood glucose monitoring to insurers and self-insured employers. According to an SEC filing, the pricetag on the all-stockdeal will be equivalent to 6.6 times a six month sales period ending in September. While this is likely not the same number, it does provide a frame of reference: According to the SEC filing, if the company rakes in more than $1 million in sales during that period, then 4G Biometrics Founder and CEO Randall Gardner will be appointed to ActiveCare's board of directors.
ActiveCare said that the deal will help it "dramatically increase" its membership base and gives it direct access to insurance and self-insured companies.
4G Biometrics offers its customers a near-real time blood glucose monitoring device enabled by Bluetooth that sends the captured data to a desktop application. The online portal includes an "e-logbook record" with time stamps as well as a manual entry activity and meal trackers. Here's how 4G Biometrics has described the monitoring side of its service in the past: "Your blood sugars will be monitored on a daily basis and if your readings are dangerously high or low; you, your family members, or caregivers, including physicians, you may be contacted by phone, email, instant messaging, or text message; whichever method you select."
ActiveCare already offers a special mobile phone, the ActiveOne PAL, that enables users to make regular phone calls (via a concierge service). The device also includes GPS for tracking and virtual fencing applications, as well as an accelerometer for "automatic fall detection". While the company has added some medication adherence services for its device and through a partnership with MedMinder, prior to this 4G Biometrics acquisition the company did not offer an specific diabetes management services.
"We are excited to reach this agreement with 4G Biometrics," Jim Dalton, CEO of ActiveCare, stated in a company release. "The healthcare industry currently is not well positioned to effectively treat and prevent diabetes. 4G Biometrics has come up with a proven program that encourages patients and their employers to work together in battling the disease. This acquisition provides ActiveCare with another helpful service to offer our members. At home and on the go -- our members and their families want the peace of mind that comes from knowing that ActiveCare is watching over them, 24 hours a day, seven days a week."
For more on the deal, read the press release below:
PRESS RELEASE: SALT LAKE CITY, UT--(Mar 13, 2012) - ActiveCare, Inc. (OTCBB: ACAR), the service leader in telehealth and personal emergency response, today announced a definitive agreement to acquire 4G Biometrics, a technology company that enables healthcare and insurance providers as well as employers to manage risks and reduce costs associated with employees diagnosed with diabetes. The 4G Biometric acquisition allows ActiveCare to dramatically increase its membership base while gaining direct access to insurance and self-insured companies that are fully able to reimburse for ActiveCare's suite of products and services.
Diabetes trails only cardiovascular disease as the most expensive disease state to treat. 4G Biometrics helps diabetics manage their disease and avoid acute events that cost healthcare and insurance providers millions of dollars per year. It does this by providing near-real-time blood glucose monitoring through a Bluetooth-enabled technology. Data points with any irregularities are instantly communicated to individuals/careproviders based on profiles defined by medical providers in order to more effectively treat and prevent major health issues.
"We are excited to reach this agreement with 4G Biometrics," said Jim Dalton, CEO of ActiveCare. "The healthcare industry currently is not well positioned to effectively treat and prevent diabetes. 4G Biometrics has come up with a proven program that encourages patients and their employers to work together in battling the disease. This acquisition provides ActiveCare with another helpful service to offer our members. At home and on the go -- our members and their families want the peace of mind that comes from knowing that ActiveCare is watching over them, 24 hours a day, seven days a week."
4G Biometrics is able to process patient blood glucose data that previously has not been available to physicians, care providers and medical staff. It can also generate a variety of reports detailing the clinical, biometric and financial performance of an employee group.
"ActiveCare is a perfect fit to take our company to the next level of client service," said Randy Gardner, CEO of 4G Biometrics. "Our clients will benefit from ActiveCare's CareCenter, which is staffed around the clock by CareSpecialists and registered nurses who maintain the medical histories of all members. They are prepared to answer any question and meet any need. This is particularly helpful for members trying to learn how to live with diabetes."
ActiveCare, Inc. is the service leader in telehealth and personal emergency response. Its CareCenter is staffed around the clock by highly trained specialists offering all manner of assistance, from help in emergencies to health monitoring and concierge services. Members reach the CareCenter through the Personal Assistance Link, ActiveCare's patented, one-button emergency cell phone. Other ActiveCare technologies include the Active Home, the ActivePortal and its ProActiveCare discharge planning solution. Headquartered in Salt Lake City, Utah, and publicly traded on the OTC Bulletin Board under symbol ACAR, ActiveCare is committed to providing consistent excellence in quality and safety as well as friendly care for members and caregivers alike. To learn more about ActiveCare, Inc., visit www.activecare.com or contact investor/media relations at 877-862-5545.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, the actual availability of funds under the equity line of credit, governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with our marketing expansion. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.