Hill-Rom bought Welch Allyn for $2.05 billion, resulting in financial benefits for both medical device and technology companies, according to Syracuse Media Group.
Here are seven things to note:
1. Hill-Rom's acquisition of Welch Allyn allows Hill-Rom to expand its company on a global scale by opening a new market in physicians' offices.
2. Welch Allyn will have the benefit of increasing their international sales with it only presenting conducting 40 percent of its business overseas. Most medical device companies conduct 50 percent of their sales internationally.
3. Although both companies are medical device companies, their products do not overlap. Welch Allyn's products include diagnostic equipment, physical exam gear and patient monitoring technology. Hill-Rom's products consist of hospital beds, patient lifting devices and surgical tables.
4. Hill-Rom anticipates the deal to save them about $40 million by 2018 with savings specifically in facility optimization.
5. Welch Allyn presently employs around 2,600 people with 1,300 employees based in Skaneateles Falls. Layoffs are unfortunately common after acquisitions.
6. The deal will allow Welch Allyn to expand its portfolio of technology and enhance its research and development capabilities.
7. The deal is anticipated to close before Sept. 30 with Hill-Rom planning to maintain the Welch Allyn brand.
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