Baxter (NYSE:BAX) agreed to acquire Hillrom (NYSE:HRC) at a price of $156 per share in cash for a total equity value of approximately $10.5 billion, with the purchase reaching a total enterprise value of approximately $12.4 billion, including the assumption of debt. That purchase price reflects a 26% premium to Hillrom’s closing stock price on July 27, 2021, the last trading day prior to media reports speculating on the potential transaction.
The acquisition was expected to add to Baxter’s product portfolio and innovation pipeline in a way that allows it to offer a wider range of medical products and services to patients and clinicians across the care continuum, the company said. A major part of the deal involves accelerating the companies’ expansion into digital and connected care solutions to enable patients to access hospital-level care at home or in other care settings.
“Baxter and Hillrom share a common vision for transforming healthcare to better serve all patients and providers,” Baxter Chairman, President and CEO José (Joe) E. Almeida said. “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.”