By Colin Kellaher

Shares of Hill-Rom Holdings Inc. rose 4% in premarket trading on Thursday after the medical-equipment maker agreed to be acquired by Baxter International Inc. for $10.5 billion.

Baxter, a Deerfield, Ill., medical-technology company, said it would pay $156 a share in cash for Chicago-based Hill-Rom.

The purchase price is 26% above Hill-Rom's closing price of $123.78 on July 27, the last trading day before published reports said the company had rebuffed a bid of $144 a share from Baxter.

The Wall Street Journal on Sunday reported that Baxter was closing in on a deal to buy Hill-Rom for about $150 a share.

Hill-Rom shares, which closed Wednesday at $145.06, were recently changing hands at $150.85 in premarket trading. Shares of Baxter gained 1.6%.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 02, 2021 09:11 ET (13:11 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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