Baxter (NYSE:BAX) is reportedly in advanced talks to acquire Hillrom (NYSE:HRC) for approximately $10 billion.
The Wall Street Journal reported yesterday that the talks were ongoing at an advanced stage, having earlier reported on rumblings of a potential deal last month. Hillrom’s stock shot up when that report came out and is rising again today, ticking up 10.8% at $147.20 per share.
Reportedly, the takeover deal could value Hillrom at about $150 per share, with expectations of a deal being reached by midweek as long as talks don’t fall apart in that space of time.
When talks of a deal first surfaced, Needham & Co. senior research analyst Mike Matson said that a deal would make some sense considering the two companies have little product overlap and Hillrom’s connected care and patient monitoring focus could be complementary to Baxter’s hospital care portfolio.