Hill-Rom Holdings Acquires Welch Allyn

Hill-Rom Holdings (Batesville, IN, USA), a leading provider of technologies and services to the healthcare industry, has agreed to purchase Welch Allyn (Skaneateles Falls, NY, USA) in a bid to expand into the point-of-care diagnostics market.

The mutual infrastructure-leveraging move, part of a larger merger process that is transforming the healthcare technology industry, will allow for improved offerings in areas such as diagnostics, sensing and patient-monitoring technologies, clinical workflow, surgical safety and efficiency, respiratory health, wound care and prevention, and mobility technology. The integrated company will thus hold positions across the total care continuum, including primary and intensive care units (ICUs), patient rooms, operating rooms (ORs), and post-acute care wards.

The combined entity will also expand its channel access and call points, as well as enhance clinical workflow through electronic medical record (EMR) connectivity solutions. In a joint statement, the companies said that combining Hill-Rom’s leading position in hospitals and ORs worldwide with Welch Allyn’s leading position in point of care diagnostics and testing would expand their ability to help healthcare providers focus on patient care solutions, and provide a wide range of innovative solutions to a global patient-centric, customer base focused on quality and efficiency.

“As one company, we will have the infrastructure, capabilities and innovative product portfolio to faster pursue a differentiated business model that meets the evolving needs of patients and customers and delivers superior healthcare outcomes across multiple care settings,” said John Greisch, president and CEO of Hill-Rom. “We look forward to welcoming the Welch Allyn team to Hill-Rom and combining our two great companies to continue our shared mission of improving patient outcomes and reducing patient costs.”

“This transaction represents a compelling opportunity for Welch Allyn with the right partner in Hill-Rom, who appreciates our company's special history, strengths, and strategy,” said Steve Meyer, president and CEO of Welch Allyn. “Hill-Rom and Welch Allyn share a commitment to patients and a history of delivering innovative solutions. Hill-Rom has the scale, geographic reach, experience and vision necessary to foster the next stage of growth and to ensure Welch Allyn's continued success.”

The acquisition was made for approximately USD 2.05 billion in cash and stock. Under the terms of the agreement, Welch Allyn shareholders will receive USD 1.625 billion in cash and approximately 8.1 million newly-issued shares of Hill-Rom common stock.

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