Welch Allyn's expertise in point of care diagnostics will be combined with Hill-Rom's leadership position in hospitals and operating rooms, thanks to a just announced acquisition.

Under the terms of the acquisition, Welch Allyn shareholders will receive $1.625 billion in cash and approximately 8.1 million newly-issued shares of Hill-Rom stock.

Together, Hill-Rom and Welch Allyn have roughly two centuries worth of medical device experience. John J. Greich, CEO of Hill-Rom, described his company as "aggressively pursuing external growth opportunities," and had this to say about the development:
"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 health care outcomes across multiple settings."

Hill-Rom has stated that it expects the combined company will have $2.6 billion in revenues and generate over $500 million in adjusted earnings before interest, tax, depreciation and amortization (EBITDA).

On behalf of Welch Allyn, Seth Meyer, CEO, described the transaction as a "compelling opportunity" to make a bigger difference in the lives of patients throughout the world.

The deal should be complete by October, leaving 75 Welch Allyn shareholders in ownership of roughly 13 percent of the new company. According to the official announcement, no Welch Allyn shareholder will own more than about one percent of Hill-Rom equity.

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