- Associated Press - Wednesday, June 17, 2015

CHICAGO (AP) - Hill-Rom Holdings Inc. is buying medical diagnostic equipment maker Welch Allyn in a cash-and-stock deal valued at about $2.05 billion in a move to bolster its competitive position.

The combined company is expected to have $2.6 billion in revenue, with operations in more than 30 countries and about 10,000 employees globally.

Welch Allyn Inc. stockholders will receive approximately $1.63 billion in cash and about 8.1 million newly issued shares of Hill-Rom stock.

Privately held Welch Allyn’s approximately 75 shareholders will own about 13 percent of the combined company.

Hill-Rom President and CEO John Greisch will serve in the same positions for the combined business. Certain members of Welch Ally’s senior management are expected to join the company, which will be based in Chicago.

Welch Allyn is based in Skaneateles Falls, New York.

The deal is targeted to close before September’s end.

Shares of Hill-Rom surged $4.17, or 8 percent, to $56.55 in Wednesday morning trading. The stock touched $57.95 earlier in the session, a multiyear high.

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