Hill-Rom to acquire Welch Allyn in $2B transaction
Hill-Rom Holdings will acquire privately-held Welch Allyn for approximately $2.05 billion in cash and stock.
Under the terms of the agreement, Welch Allyn shareholders will receive $1.625 billion in cash and approximately 8.1 million newly-issued shares of Hill-Rom common stock, according to a release.
Upon the completion of the transaction, which the companies expect will occur before the end of September, Welch Allyn shareholders, a group that consists of about 75 shareholders, will own approximately 13 percent of the combined company. No single Welch Allyn shareholder will own more than approximately one percent of Hill-Rom equity.
Headquartered in Skaneateles Falls, New York, Welch Allyn manufactures medical diagnostic equipment. Through the acquisition of Welch Allyn, Hill-Rom expects to play a greater role in improving patient care and efficiency and reducing healthcare costs for its customers.
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.