The acquisition will provide Baxter with a complementary product portfolio and innovation pipeline, thereby enabling it to provide a range of medical products and services to patients and clinicians across the care continuum
Baxter's global headquarters in Deerfield, Illinois. (Credit: Business Wire)
US-based healthcare company Baxter International has agreed to acquire medical technology company Hillrom for $10.5bn.
The transaction values Hillrom at approximately $12.4bn, including the assumption of debt.
Baxter will pay $156.00 in cash for each outstanding share of Hillrom common stock, upon completion of the deal.
With around 10,000 employees, Hillrom offers digital and connected care solutions, as well as collaboration tools to the patients and their caregivers.
The company’s product portfolio consists of smart bed systems, patient monitoring and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space.
In addition, the company provides actionable and real-time insights at the point of care settings.
The acquisition will provide Baxter with a complementary product portfolio and innovation pipeline, thereby enabling to provide a range of medical products and services to patients and clinicians across the care continuum and around the world.
Hillrom president and CEO John Groetelaars said: “Baxter is the ideal partner to enhance our global reach and realize the true potential of our vision to accelerate medical innovation around the world. With our shared patient-centric cultures, we look forward to seamlessly bringing our two companies together.”
The combination is also expected to expedite both firms’ expansion into digital and connected care solutions, which will help patients to easily access hospital-level care at home or in other care settings.
The complementary product offering of the combined companies will facilitate better integration and coordination of healthcare delivery for patients in the hospital, at home and in alternate sites of care.
Both firms’ combined capabilities in therapeutic delivery, monitoring, blood purification, diagnostics and communications for patients and caregivers will help to achieve enhanced patient outcomes, improve workflow efficiencies and data-driven insights with reduced healthcare costs.
Baxter chairman, president and CEO José Almeida said: “Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve. We’re very excited to welcome the Hillrom team to Baxter, and to join together to advance our mission to save and sustain lives.”
Subject to the approval of Hillrom shareholders and the satisfaction of customary closing conditions, including regulatory approvals, the deal is expected to be completed by early 2022.