Medical technology company BD has signed an agreement to acquire CareFusion, for around $12.2bn in cash and stock.

CareFusion provides products and services to hospitals, in order to improve the safety and quality of care.

BD chairman and CEO Vincent Forlenza said the acquisition accelerates firm’s transition from a product-focused company to a customer-centric provider of innovative healthcare solutions with leading scale across the medication management value chain and expanded solutions for patient safety.

"With the targeted cost savings we have identified and the growth opportunities we see in bringing CareFusion products to more patients and healthcare workers around the world, we expect this transaction to create meaningful value for our shareholders, customers, employees and other stakeholders," Forlenza added.

Subject to regulatory and CareFusion shareholder, the transaction is expected to be completed in the first half of 2015.

CareFusion offers products such as Alaris infusion pumps and IV sets, MaxPlus and MaxZero IV connectors and sets, Pyxis automated dispensing and patient identification systems.

The company also produces Avea, LTV series and AirLife ventilation and respiratory products, ChloraPrep products and MedMined services for data mining surveillance, V. Mueller surgical instruments, as well as line of products that support interventional medicine.