US-based medical technology company Hill-Rom has agreed to acquire medical devices and technology company Mortara Instrument for $330m in cash.
The portfolio of Mortara consists of diagnostic cardiology devices for a comprehensive usage across the clinical care, from acute care to primary care and clinical research organisations.
Mortara's range of products operates under three brands which are Mortara, Quinton and Burdick, including resting electrocardiography (ECG), cardiac stress exercise, Holter monitoring, ambulatory blood pressure monitoring, and cardiac and pulmonary rehabilitation and multi-parameter patient monitoring.
The devices are characterised by advanced diagnostic algorithms, EMR connectivity and enhanced security features.
Mortara Instrument CEO Dr Justin Mortara will be retained as the leader of the acquired company and he will report to Hill-Rom front line care president Alton Shader.
Hill-Rom President and CEO John Greisch said: "Our growing Welch Allyn franchise will be immediately strengthened by the addition of Mortara Instrument's experienced team, breadth of diagnostic cardiology and patient monitoring offerings and best-in-class ability to integrate with electronic medical record (EMR) systems.
"With Mortara, we will expand our diagnostic cardiology franchise in the acute care, clinical research and primary care settings, where we will use our global commercial presence to accelerate growth of the Mortara business.
“This transaction is aligned with our strategy to expand in our clinical focus areas, in this case patient diagnostics and monitoring, through the addition of complementary innovative solutions and enhanced customer offerings to deliver value for shareholders."
On a financial aspect, the acquisition is expected to boost Hill-Rom’s revenue growth and increases its both gross and operating margins.
Subject to customary closing conditions, the acquisition is expected to be completed in the second quarter of this year.