The medical products company Baxter International announced this week that it would acquire Hillrom, a connected care and collaboration tool vendor.
The acquisition aims to expand digitally enabled connected care, especially beyond hospital settings, and provide a broader array of services to clinicians and patients.
“Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” said José E. Almeida, Baxter’s chair, president and chief executive officer, in a statement.
WHY IT MATTERS
According to the organizations, the companies’ products will support patients in the hospital, at home and in alternate sites of care.
In addition, Baxter and Hillrom say their combined portfolio – particularly where therapeutic delivery, monitoring, blood purification, diagnostics and communications are concerned – will accelerate digitally enabled connected healthcare.
“Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and 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 and 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 and chief executive officer.
“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,” 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 and caregivers will benefit from enhanced capabilities across the continuum of care, our shareholders will receive a significant and immediate premium for their investment, and our employees will benefit from being part of a larger, stronger company with accelerated growth opportunities.”
Kat Jercich is senior editor of Healthcare IT News.
Twitter: @kjercich
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.
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