Through the deal, Chicago-based Hill-Rom will pay a cash consideration of $180 million and up to an additional $15 million in milestone-based payments.
Hill-Rom said that the acquisition of Sarasota, Fla.-based Voalte, which was founded in 2008 and recently reported yearly revenue of nearly $40 million, will advance its digital and mobile communications platform and capabilities.
Voalte currently serves more than 200 healthcare customers with more than 84,000 devices on its mobile platform, connecting approximately 220,000 caregivers and providing voice, alarm and text communications.
“Our scalable enterprise communication platform is proving to be a critical tool in the digital transformation of healthcare systems, and we look forward to further developing our platform in alignment with Hill-Rom’s vision of advancing connected care. Bringing our companies together will allow us to offer customers a single, integrated solution – delivering actionable data from smart hospital beds, nurse call and patient monitoring technology right to a caregiver’s mobile device,” Voalte CEO Trey Lauderdale said in a press release.
Hill-Rom said that it expects the deal to close during its fiscal third quarter of this year, and that it expects the acquisition to be modestly dilutive to its adjusted earnings per diluted share for its fiscal year 2019 and increasingly accretive in its fiscal year 2020 and beyond. The company added that it does not expect the deal to have a material impact on its fiscal 2019 adjusted earnings guidance.
“Interoperability and connectivity have become critical elements in providing quality healthcare, reducing length of stay and driving efficiencies across the healthcare continuum. This transaction strategically fits with our vision of advancing connected care to improve workflow and real-time actionable insights at the point of care, while driving accelerated growth and delivering an attractive margin profile. We look forward to welcoming and working closely with the talented Voalte team, and benefiting from Voalte’s technology, capabilities and substantial installed customer base to enhance outcomes for patients and their caregivers,” Hill-Rom prez & CEO John Groetelaars said in a prepared statement.
In January, Hill-Rom reported fiscal second-quarter results that beat the consensus forecast on Wall Street.