Baxter, looking to accelerate connected care, will acquire Hillrom for $10.5B
The medical products company Baxter International announced this week that it would acquire Hillrom, a connected care collaboration tool vendor.
The acquisition aims to expdigitally enabled connected care, especially beyond hospital settings, provide a broader array of services to clinicians patients.
“Baxter Hillrom share a common vision for transforming healthcare to better serve all patients providers,” said José E. Almeida, Baxter’s chair, president chief executive officer, in a statement.
WHY IT MATTERS
According to the organizations, the companies’ products will support patients in the hospital, at home in alternate sites of care.
In addition, Baxter Hillrom say their combined portfolio – particularly where therapeutic delivery, monitoring, blood purification, diagnostics communications are concerned – will accelerate digitally enabled connected healthcare.
“Patients increasingly want to receive their care at home or nearby, while hospitals other care providers are increasingly using digital health technologies to expaccess, improve quality lower costs,” said Almeida.
Baxter will pay $156 in cash for each outstanding share of Hillrom common stock, totaling a purchase price of $10.5 billion.
It will also assume Hillrom’s outstanding debt cash for a total enterprise value of about $12.4 billion.
The transaction is expected to close by early 2022.
“We are proud of the steps we have taken to transform Hillrom into a medical technology leader with an innovative portfolio of connected care solutions,” said John Groetelaars, Hillrom’s president chief executive officer.
“Baxter is the ideal partner to enhance our global reach realize the true potential of our vision to accelerate medical innovation around the world,” he added.
THE LARGER TREND
The acquisition announcement, which had been rumored for a few days, follows a string of Hillrom’s own purchases over the past few years.
In 2019, the company (then known as Hill-rom) bought Voalte, a communications tool vendor, for $180 million.
Earlier this year, it also purchased some of the assets of EarlySense, a contact-free continuous monitoring technology company.
ON THE RECORD
“Today’s milestone announcement represents a win-win for all stakeholders,” said Groetelaars. “Patients caregivers will benefit from enhanced capabilities across the continuum of care, our shareholders will receive a significant immediate premium for their investment, our employees will benefit from being part of a larger, stronger company with accelerated growth opportunities.”