The deal is valued at a total enterprise cost of nearly $12.4bn, which includes the assumption of debt.
Baxter noted that Hillrom has a product portfolio and innovation pipeline that complements its assets.
The agreement will facilitate the offering of an extensive range of medical products and services to patients and doctors globally as well as providing patient- and user-centred healthcare, with an aim to boost clinical outcomes.
The Baxter-Hillrom combination is anticipated to expedite the expansion of the companies into digital as well as connected care solutions, which are gradually aiding patients to access hospital-level care at home or in various other care settings.
Furthermore, the merged businesses will broaden access to Hillrom’s portfolio across the world and will offer financial returns for stakeholders of Baxter.
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The merged companies’ complementary product offering will help support patients in the hospital, at home and in other care centres, permitting efficient incorporation and management of healthcare delivery.
In addition, the combined expertise in therapeutic delivery, monitoring, blood purification, diagnostics and communications for patients and caregivers will boost opportunities for connected care.
This is expected to enhance patient outcomes, workflow efficiencies and data-powered insights, as well as reduce total healthcare expenses.
Meanwhile, Baxter’s worldwide infrastructure could help expand the international business of Hillrom.
Baxter International chairman, president and CEO José Almeida said: “Patients increasingly want to receive their care at home or nearby, while hospitals and other care providers are increasingly using digital health technologies to expand access, improve quality and lower costs.
“Baxter and Hillrom are uniting to meet the challenges of a rapidly evolving global healthcare landscape, while also creating significant value for all the stakeholders we serve.”
The acquisition has been unanimously approved by the boards of directors of both companies.
Subject to the necessary approvals and customary closing conditions, the deal is anticipated to conclude next year.
In July, Baxter International’s Baxter Healthcare subsidiary acquired certain assets related to PerClot Polysaccharide Hemostatic System from CryoLife in a deal valued at up to $60.8m.