Chicago-based medical technology company Hill-Rom Holdings announced this week that it has entered into a definitive agreement to buy mobile healthcare communications firm Voalte Inc. The acquisition will strengthen Hill-Rom’s care communications growth strategy and advance its digital and mobile platform and capabilities.
The terms of the agreement will see Hill-Rom pay a total cash consideration of US$180mn for Voalte, with a performance-based follow up payment of up to $15mn to be tied to Voalte’s attainment of certain commercial milestones.
Founded in 2008 and based in Sarasota, Florida, Voalte currently serves more than 200 healthcare customers with more than 84,000 devices on its mobile platform. The company reported a revenue of approximately $40mn last financial year and has a record of consistently achieving double-digit growth.
"Interoperability and connectivity have become critical elements in providing quality healthcare, reducing length of stay and driving efficiencies across the healthcare continuum," said John P. Groetelaars, president and CEO of Hill-Rom. "This transaction strategically fits with our vision of advancing connected care to improve workflow and real-time actionable insights at the point of care, while driving accelerated growth and delivering an attractive margin profile. We look forward to welcoming and working closely with the talented Voalte team, and benefiting from Voalte's technology, capabilities and substantial installed customer base to enhance outcomes for patients and their caregivers."
"Our scalable enterprise communication platform is proving to be a critical tool in the digital transformation of healthcare systems, and we look forward to further developing our platform in alignment with Hill-Rom's vision of advancing connected care," said Trey Lauderdale, CEO of Voalte. "Bringing our companies together will allow us to offer customers a single, integrated solution – delivering actionable data from smart hospital beds, nurse call and patient monitoring technology right to a caregiver's mobile device."
The deal is likely to close in Q3, 2019, with Hill-Rom stock expected to dilute in value over the course of 2019 and accrete over the course of 2020 and beyond.