Baxter International has closed the acquisition of US-based Hillrom for $10.5bn, to create a global medical technology company valued at nearly $15bn.

The enterprise value of the transaction is approximately $12.5bn, assuming Hillrom’s outstanding debt obligations.

In September this year, the two companies have initially signed an agreement.

Under the terms of the agreement, Baxter has purchased all the outstanding shares of Hillrom common stock at $156 per share, for a total of $10.5bn.

Hillrom is engaged in providing digital and connected care solutions, along with collaboration tools, and has workforce of around 10,000.

Its product portfolio includes smart bed systems, patient monitoring and diagnostic tools, respiratory health devices and advanced surgical equipment.

Also, the company provides real-time insights at the point of care settings.

Baxter chairman, president and chief executive officer José E Almeida said: “The Baxter-Hillrom combination unlocks the next phase of our transformation, presenting a new wave of potential to drive greater impact for patients, clinicians, employees, shareholders and other communities we serve worldwide.

“Integrating our complementary capabilities introduces additional opportunities for growth across our broad geographic footprint and also creates remarkable new possibilities for connectivity with leading-edge digital health innovation focused on enhancing care, lowering costs and increasing workflow efficiency.”

According to Baxter, the acquisition combines two medtech organisations with a complementary products and pipeline.

The combination is expected to create opportunities for innovation across care settings and help improve care outcomes for patients.

The company is planning to expand Hillrom and Welch Allyn products into new global markets, and enhance the global access to the combined portfolio.

It intends to use the combined expertise in connectivity technology and integration, digital health solutions, data visualisation and analytics, and monitoring and sensing.

Almeida added: “We are invigorated by the potential to create value for patients and customers in new ways as a combined company, and we are energized by the power we bring together as one team united in our Mission to Save and Sustain Lives. We are very excited to welcome our Hillrom colleagues to Baxter.”