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Hill-Rom to buy Welch Allyn in $2.1 billion deal

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Hill-Rom Holdings
Acquisition   The health care technology companies

Hill-Rom Holdings said it has agreed to buy privately-held Welch Allyn in a cash and stock deal valued at about $2.1 billion.

The health care technology companies will develop new technologies for patients and caregivers, Hill-Rom said. Welch Allyn shareholders will receive $1.625 billion in cash and about 8.1 million newly-issued shares of Hill-Rom.

The combined company is expected to have $2.6 billion in revenue and generate more than $500 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA.

Hill-Rom expects to deal to immediately boost EBITDA margins and to lift 2016 adjusted per-share earnings by more than 10%.

"We believe this combination, which will be accretive to Hill-Rom's adjusted gross and EBITDA margins, will also result in an enhanced financial profile, creating the opportunity for accelerated growth," Hill-Rom Chief Executive John Greisch said in a statement.


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