by
Thomas Dworetzky, Contributing Reporter | January 10, 2017
The deal has several benefits, according to the companies. Bringing Mortara acute-care strength and Welch Allyn's primary-care diagnostic cardiology offerings together will boost Hill-Rom's ability to further penetrate this $1 billion global market. The combination will also allow Hill-Rom to offer a more comprehensive suite of continuous vital sign monitoring parameters to that $5 billion global patient monitoring marketplace.
Beyond that, Mortara's extensive relationships with leading global EMR providers combined with Hill-Rom's global clout should offer greater opportunities to improve revenue growth and profitability by expanding Welch Allyn's patient monitoring and diagnostic cardiology businesses.
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The combination of companies will also strengthen R&D efforts, especially by adding Mortara's ECG, software, and diagnostic algorithm research to Hill-Rom's global R&D team.
Financial benefits include estimated operational synergies in the range of over $10 million annually.
Chicago-based Hill-Rom also stated that thanks to the way the acquisition will be structured, it should see a “significant” tax benefit – as much as $40 million. This cuts the purchase price effectively to about $290 million.
Hill-Rom expects the deal to close in its 2017 fiscal second quarter, subject to regulatory and other conditions.
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