Baxter (NYSE:BAX) is reportedly in advanced talks to acquire Hillrom (NYSE:HRC) for approximately $10 billion.
The Wall Street Journal reported yesterday that the talks were ongoing at an advanced stage. WSH previously reported on rumblings of a potential deal last month. Hillrom’s stock shot up when that report came out, and it’s rising again today, up nearly 10.5% at $146.79 per share by midday trading.
BAX shares were up 3.5% at $76.59 apiece. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.
Reportedly, the takeover deal could value Hillrom at about $150 per share, with expectations of a deal being reached by midweek as long as talks don’t fall apart in that space of time.
When talks of a deal first surfaced, Needham & Co. senior research analyst Mike Matson said that a deal would make some sense considering the two companies have little product overlap and Hillrom’s connected care and patient monitoring focus could be complementary to Baxter’s hospital care portfolio.
