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August 16, 2021

Bardy Diagnostics Acquired by Hillrom

River Cities is pleased to announce that Hillrom acquired Fund VI portfolio company, Bardy Diagnostics, for $375 million plus two performance-based earnouts. The valuation multiple ascribed to BardyDx represents our second top decile multiple ascribed to an RCC med tech M&A event in the last 12 months.

BardyDx is an innovator in digital health and remote patient monitoring, with a focus on providing the most diagnostically accurate and patient-friendly cardiac patch monitors to the industry. The company’s CAM patch is a non-invasive, P-wave centric ambulatory cardiac monitor and arrhythmia detection device. During our short two-year hold period, the company, led by its stellar management team, grew revenue by more than 600% while providing greater patient value and more confident physician diagnoses.

“This acquisition provides Hillrom with a highly strategic and differentiated diagnostic cardiology platform aligned with our vision of Advancing Connected Care™, as well as an attractive recurring, high-growth revenue stream and gross margin profile,” said Hillrom President and CEO John Groetelaars. “BardyDx brings a talented team with significant commercial, clinical and scientific expertise, and dedicated independent diagnostic testing facilities. We look forward to welcoming the 230 employees who will join us in our mission of enhancing outcomes for patients and their caregivers.”

This marks the second successful liquidity event for Fund VI in just three years since the Fund’s inception, representing validation of our healthcare-focused strategy.