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German dialysis products and services provider Fresenius Medical Care has entered an agreement to purchase US-based firm NxStage Medical for $2bn.

Under the terms of the agreement, all outstanding shares of NxStage will be bought by Fresenius Medical through a merger for $30 per common share.

Founded in 1998, NxStage is focused on development, production and marketing of a variety of medical devices for home dialysis and critical care setting.

The acquisition is intended to help Fresenius Medical to establish its footprint in the US critical care market, improve clinical outcomes and patient empowerment, as well as strategically support its vertical integration and care coordination initiative.

Fresenius Medical Care chairman and CEO Rice Powell said: “The acquisition supports our 2020 strategic initiative of driving growth in the core business with innovation, better clinical outcomes through care coordination, and improving the patient experience.

“Combining our two companies would strengthen and diversify our business in the US and help meet the evolving needs of our patients.”

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“Combining our two companies would strengthen and diversify our business in the US and help meet the evolving needs of our patients.”

Through the deal, the firm intends to leverage its manufacturing, supply chain and marketing expertise in a less labour and capital-intensive care setting across the dialysis products, services and care coordination industries.

NxStage Medical founder and CEO Jeff Burbank said: “The combination of Fresenius Medical Care’s industry leadership with NxStage’s innovative products and employees has the potential to significantly advance the standard of care for patients around the world.

“I strongly believe our opportunities would be greater working together for the benefit of patients, customers and shareholders.”

Approved by NxStage’s board, the merger is additionally subject to the approval of NxStage stockholders, regulatory approvals, and other customary closing conditions.

The acquisition is estimated to be closed next year and is expected to be accretive to Fresenius Medical’s net income within three years from closing.