Pharos Capital Group, a middle-market private equity firm based in Dallas and Nashville, has acquired a majority stake in RhythMedix. The two companies announced the transaction on January 4.
Based in Mt. Laurel, New Jersey, RhythMedix was founded in 2013 to improve the remote cardiac monitoring experience for both patients and clinicians. The company’s proprietary RhythmStar® 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.
Pharos Capital Group is a physician-founded investment firm focused on growing healthcare companies that aim to lower the cost of care, improve patient outcomes and expand access to care in underserved markets. It has invested in 58 companies and has $1 billion of private equity assets under management, as of September 30, 2023.
RhythMedix’s existing management team is reinvesting alongside Pharos and will remain with the company in their current roles. Dan Delaney, former CEO of TechLab, a previous Pharos portfolio company, will represent Pharos on the Board of RhythMedix. This marks the sixth investment from Pharos’ latest flagship fund, Pharos Capital Partners IV, L.P., investing alongside its parallel fund, Pharos Capital Partners IV-A, L.P., a licensed rural business investment company. Terms of the transaction were not disclosed.
According to data captured in the LevinPro HC database, this acquisition marks the third eHealth transaction of 2024, and the first in the remote patient monitoring specialty. During 2023, there were 273 eHealth and 22 remote patient monitoring deals announced.
