According to the agreement, ICU Medical will buy Pfizer’s Hospira Infusion Systems business for $400 million in newly issued shares and $600 million in cash. Pfizer bought Hospira Infusion Systems in February for a total enterprise value of $17 billion .
The transaction gives Pfizer a 16.6 percent stake in ICU Medical. Pfizer will also be able to nominate one of the company’s directors to ICU Medical’s board of directors, according to the article. Pfizer reportedly agreed to certain restrictions regarding the transfer of its ICU Medical shares for 18 months following the close of the deal, according to the article.
The agreement is subject to regulatory approval. Officials from both companies expect the deal to close in the first quarter of 2017.
More articles on transactions and valuations:
Chinese billionaire claims he does not want to control CHS
5 things to know about freestanding emergency departments
Ardent, LHP Hospital Group merger to form 2nd largest private, for-profit hospital chain
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
