Medical technology firm Hill-Rom Holdings has signed an agreement to acquire US-based Welch Allyn, for around $2.05bn in cash and stock.
As part of the deal, Hill-Rom will pay $1.625bn in cash to Welch Allyn shareholders and provide about 8.1 million newly-issued shares of Hill-Rom common stock.
The acquisition is said to expand Hill-Rom’s product portfolio with point of care diagnostics and testing, allowing it provide enhanced patients care solutions for hospitals, physician offices and other care settings.
Hill-Rom Holdings president and CEO John Greisch said: "Hill-Rom is at the forefront of improving the healthcare delivery system, and this compelling combination further positions Hill-Rom to play an increasingly important role in improving patient care."
Based in Skaneateles Falls of New York, Welch Allyn produces medical diagnostic equipment and diversified portfolio of devices that assess, diagnose, treat and manage a wide variety of illnesses and diseases.
Welch Allyn produces physical examination instruments and accessories and EMR-connected vital signs and cardiac monitoring solutions that help healthcare professionals to provide better care for their patients.
The company is involved in developing solutions to meet the needs of frontline care with multiple call points, including primary care physicians, nurses, hospitalists, biomeds and specialists.
Welch Allyn president Steve Meyer said: "Hill-Rom has the scale, geographic reach, experience and vision necessary to foster the next stage of growth and to ensure Welch Allyn’s continued success."
Subject to customary closing conditions, the deal is expected to complete by the end of September this year.
Hill-Rom provides patient care solutions in five core areas, including advancing mobility, wound care and prevention, clinical workflow, surgical safety and efficiency and Respiratory Health.
Image: A medical halogen penlight to observe Pupillary light reflex manufactured by Welch Allyn. Photo: courtesy of Hanabishi.