Baxter International, a medical supplies firm, said this week that it will buy Hillrom, a linked care and collaboration platform vendor. The acquisition seeks to extend digitally-enabled connected care, particularly outside of hospital settings, and provide clinicians and patients with a greater range of services.
- Support: The companies say their complementary products will support patients in the hospital, at home, and in alternate sites of care. “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.
- Benefits: According to the organizations, the companies’ products will benefit patients in the hospital, at home, and at other locations where care is provided. Furthermore, Baxter and Hillrom claim that their combined portfolio will advance digitally-enabled connected healthcare, particularly in the areas of medicinal delivery, monitoring, blood purification, diagnostics, and communications.
- Shares: 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.
- Purchases: The purchase, which had been speculated for a few days, comes after a spate of Hillrom’s own purchases in recent years. In 2019, the firm (then known as Hill-rom) paid $180 million to acquire Voalte, a communications technology manufacturer. It also bought part of the assets of EarlySense, a contact-free continuous monitoring technology startup, earlier this year.
- Transformation: “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.