Dive Brief:
- Hill-Rom Holdings, a manufacturer of hospital beds and surgical products, plans to buy Welch Allyn for $2.05 billion, expanding into the diagnostics market.
- Welch Allyn has point-of-care equipment that enables to perform bedside testing in hospitals, ER, home health and long-term care centers.
- News of the deal, expected to be finalized in September, raised Hill-Rom shares by 10.6% to a record high of $57.95.
Dive Insight:
Analyst Matthew Mishan from KeyBanc Capital said more deals between medical technology companies are likely as they look to expand and adapt to customers in integrated healthcare settings.
"Welch Allyn provides Hill-Rom with large, more diverse platforms that will enable more M&A opportunities in the future," said John Greisch, CEO of Hill-Rom. The deal "is the next step in our transformational journey," he added.
The company said it expects to generate revenue of $2.6 billion once the deal is closed.