Medical technology firm Hill-Rom has agreed to acquire US-based Mortara Instrument for $330m.
Based in Milwaukee of Wisconsin, Mortara Instrument is engaged in the development and manufacturing of diagnostic cardiology and patient monitoring solutions.
Hill-Rom is expecting the acquisition structure to enable it to qualify for a significant tax benefit of about $40m, helping to reduce the purchase price to $290m.
Mortara produces diagnostic cardiology devices, which can be used in different healthcare settings ranging from acute care to primary care and clinical research organizations.
The firm’s products are available under three brands such as Mortara, Quinton and Burdick.
Its products include resting electrocardiography (ECG), cardiac stress exercise, Holter monitoring, ambulatory blood pressure monitoring, and cardiac and pulmonary rehabilitation and multi-parameter patient monitoring.
With around 400 employees, Mortara also has offices in Australia, Italy, Germany, the Netherlands and the UK. It generated revenue of about $115m in the last fiscal year.
Subject to customary closing conditions, the deal is expected to complete in Hill-Rom’s fiscal second quarter of this year.
Hill-Rom president and CEO John Greisch said: “Our growing Welch Allyn franchise will be immediately strengthened by the addition of Mortara Instrument’s experienced team, breadth of diagnostic cardiology and patient monitoring offerings and best-in-class ability to integrate with electronic medical record (EMR) systems.”
Mortara Instrument CEO Dr Justin Mortara is planning to join Hill-Rom, and will continue in his leadership capacity at the acquired business unit. He will report to Hill-Rom Front Line Care President Alton Shader.
Mortara said: “By combining with Hill-Rom, Mortara Instrument will have greater opportunities to grow as part of a global leader with strong brand equity and unparalleled care setting expertise.
In 2015, Hill-Rom also acquired Welch Allyn for around $2.05bn. The acquired business produces medical diagnostic equipment and diversified portfolio of devices, which assess, diagnose, treat and manage a wide variety of illnesses and diseases.
Image: Hill-Rom has agreed to acquire Mortara Instrument. Photo: courtesy of adamr / FreeDigitalPhotos.net.