Hill-Rom expands digital approach with Voalte purchase
A long-time healthcare equipment company has made a $180 million purchase to gain a foothold in the mobile health communications market.
Hill-Rom Holdings Monday announced a definitive agreement to acquire Voalte, which develops and manufactures real-time mobile healthcare communication technology.
The cash consideration for the purchase is $180 million, but an additional $15 million in payment is on the line if the Voalte product line achieves certain commercial milestones. The acquisition is intended to strengthen Hill-Rom's position in digital and mobile communications platform and capabilities. The transaction is expected to close before June 30, the end of Hill-Rom’s fiscal third quarter.
Hill-Rom markets patient-care solutions in five core areas—mobility, wound care, patient monitoring and diagnostics, surgical safety and efficiency, and respiratory health. More commonly, it’s well known as a provider of hospital beds, patient lifts and non-invasive therapeutic products.
Sarasota, Fla.-based Voalte currently has more than 200 healthcare customers, hosting more than 84,000 devices on its platform, which support voice, alarm and text communications. It has annual revenue of $40 million. The Voalte products will be integrated with Hill-Rom’s care communications business.
Hill-Rom executives contend the combination will further strengthen the company’s connected solutions, including smart hospital beds, vital signs monitors, its LINQ mobile application and its evolving digital offering.
"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,” says John P. Groetelaars, president and CEO of Hill-Rom.