Global medical technology company Hill-Rom Holdings has signed a definitive agreement to acquire Mortara Instrument, a medical equipment manufacturer with various diagnostic cardiology and patient monitoring offerings.
Here are six things to know about the deal.
1. Mortara has more than 400 employees across the world and generated approximately $115 million in revenue in 2016, according to a news release.
2. The deal is valued at $330 million.
3. Batesville, Ind.-based Hill-Rom expects to qualify for a significant tax benefit, which — at a net present value of approximately $40 million — reduces the effective purchase price of the acquisition to approximately $290 million, according to a news release.
4. Regarding the acquisition, Hill-Rom President and CEO John J. Greisch said: "With [Milwaukee-based] 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."
5. Mortara CEO Justin Mortara, PhD, plans to become part of Hill-Rom and continue his role at Mortara, the release states.
6. Hill-Rom anticipates the transaction will close in its fiscal second quarter of 2017, subject to customary closing conditions.