AMAC Signs Definitive Agreement to be Acquired by Tunstall Healthcare Group Limited

American Medical Alert Corp (AMAC), a New York-based provider of remote health monitoring and 24/7 communication services has entered into a definitive agreement to be acquired by Tunstall Healthcare Group Limited, a leading telehealth and telecare provider in the U.K. The transaction is expected to close at the end of the fourth quarter of 2011, company officials said.

With this acquisition, AMAC will have unprecedented access to Tunstall’s world class engineering and product portfolio as well as its global operating resources. It will also allow AMAC to rapidly accelerate the scope of their portfolio in both remote patient monitoring and call center solutions.

The acquisition will include all of the outstanding common shares of AMAC for $8.55 per share in cash without interest, representing a premium of approximately 50 percent over AMAC’s closing share price on September 22, 2011.

Additionally, Tunstall will acquire one Contingent Payment Right (CPR) per share, providing a contingent cash payment for the holder of such common share in the event of a sale of AMAC’s interests in the Lifecomm joint venture or prior sale of Tunstall under certain conditions.

AMAC operates through two business divisions: Health and Safety Monitoring Systems (HSMS) and Telephony Based Communication Services (TBCS).Through HSMS, AMAC provides a rich portfolio of remote patient monitoring devices and services including personal emergency response systems (PERS), mobile PERS, medication management and telehealth. The TBCS is AMAC’s contact center services group, which provides concierge level communication services to all types of healthcare entities, including physician groups, hospitals, homecare and the pharmaceutical industry, company officials said.

“AMAC will make a great addition to the Tunstall Group,” said Gil Baldwin, chief executive officer of Tunstall, in a statement. “We share the same vision and complement each other in a number of areas. AMAC will support our ambitious growth plans in the United States.”

“As one of the largest providers of PERS in the U.S. with 75,000 subscribers nationwide and a strong reach within hospital systems, home healthcare, government agencies and senior living facilities, I believe there will be far reaching benefits for all of our customers, partners and employees of the Group,” Baldwin added.

The transaction is subject to customary closing conditions, including approval of AMAC’s shareholders, but is not subject to any financing conditions and has the full support of Tunstall’s majority shareholder. AMAC’s directors and officers, holding approximately 26 percent of the outstanding common shares of AMAC, have agreed to vote in favor of the transaction, a statement from the company said.

“We believe the decision by the board to merge with Tunstall is good for shareholders, employees and our customers,” said Jack Rhian, president and chief executive officer of AMAC, in a statement. “Tunstall’s longstanding culture of engineering excellence, technological innovation and commitment to providing seniors with the tools to live independently is perfectly aligned with AMAC’s mission.”

Upon completion of the acquisition, AMAC will become a private company, wholly owned by an affiliate of Tunstall.

Recently, MarketResearch.com released a new report entitled, "Global Telemedicine Market 2010-2014,” which forecasts that global telemedicine market will grow 19 percent annually through 2011. Federal grants offered in the U.S. is one of the major factors contributing to the growth, according to the research.