Tunstall Healthcare Group could be valued at as much as £700m if its owner, private equity firm Charterhouse, goes ahead with a sale of the business.
Charterhouse is working with JP Morgan on options for the healthcare company, which include a sale.
No deal is expected imminently as the review is at an early stage.
Leaks of the talks come at an unfortunate time for the firm as it has just outlined plans to invest up to £100m over the next five years bringing the company into the digital age and it is keen to avoid any uncertainty that could detract from its plans.
A spokesperson for Tunstall said: “It is business as usual for Tunstall and our focus is on our customers.
“The business has real momentum at present and we are getting on with implementing our Connected Healthcare 2020 strategy.”
Earlier this week the North Yorkshire firm outlined ambitious international growth plans to make the most of a surge in interest from emerging markets as governments around the world introduce preventative measures to help elderly people before they have an accident or a fall.
Tunstall, which is based in Whitley, has made a name for itself by manufacturing innovative devices that allow patients to monitor their health from the comfort of their homes.
Its systems help save lives by raising the alarm if a patient’s health deteriorates. It also saves money by reducing the number of hospital visits, doctors’ appointments and social health care visits.
Traditionally, the group has focused on analogue technology that works through a fixed telecoms line. Now the group is ready to embrace the digital age, allowing connectivity through WiFi, fixed line, Bluetooth and cellular devices.
Tunstall was bought for £514m by private equity firm Charterhouse Capital Partners in 2008. It was sold by Bridgepoint Capital which bought it in 2005 from HgCapital for £225m.