Baxter Set to Become a Strong Competitor in Connected Care with Acquisition of Hill-Rom
Baxter participated in its largest transaction to date with the acquisition of Hill-Rom. The deal will make Baxter a leader in the connected device market as the company expands its digital health offering. With increasingly connected medical devices, it’s no surprise that Baxter is investing in this space. The company has not traditionally been digitally driven; therefore, this acquisition is an excellent investment as connected care is becoming one of the most lucrative sectors of the medical device industry.
Mergers and acquisitions in the medical device industry were rife in 2021, as companies recover from the pandemic and take advantage of opportunities to strengthen and expand their product portfolios. The first quarter saw the most transactions compared to the same period in previous years, with figures reaching $ 58.1 billion, according to the GlobalData Deals database. The number of transactions slowed in the second quarter of the year, but the value of transactions increased 47% from the first quarter.
In general, there has been an increasing adoption of connected devices in the healthcare industry. In recent years, medical device companies have either developed products with connectivity capabilities or engaged in strategic partnerships and acquisitions to enter the connected care market. Hill-Rom has strengthened its position as a leader in connected care by participating in several acquisitions. The company acquired Excel Medical Electronics in January 2020 and the continuous monitoring technology from EarlySense in February 2020.
The COVD-19 pandemic has spurred the transition to connected care both inside and outside hospitals. Connected care has the potential to transform the healthcare industry by increasing safety, quality and overall efficiency. With consumers more willing to use these devices, the future of healthcare will be digital. Therefore, increasing activity in terms of product development, regulations and acquisitions is expected.