Hill-Rom has said on Wednesday that it entered into an agreement to buy the US diagnostic an monitoring device maker Welch Allyn for about $2.05 billion in cash and stock.The medical equipment group headquartered in Batesville, Indiana, in the US, said that it expects the combined entity to generate $2.6 billion in revenues. Hill-Rom estimates that the merger will allow annual savings of about $40 million by 2018, “primarily through a combination of facility optimization, procurement efficiencies and general and administrative expense reductions.”The about 75 shareholders of the private owned Welch Allyn will own approximately 13 percent of the company, according to the press release. Hill-Rom pledged to “maintain a major presence” in Welch Allyn’s current base Skaneateles Falls, New York.Over the last years, Hill-Rom Holdings has conducted a number of acquisitions and followed a rather aggressive expansion strategy. In August 2014, it completed the takeover of the medical technology division of the German machine tool and laser manufacturer Trumpf for $250m. In 2012, it acquired surgical consumables company Aspen Surgical Products for $400m and the Germany-based Volker group for $85m.About Welch AllynA leading global manufacturer of medical diagnostic equipment with a wide range of connected solutions. With nearly 2,600 employees working in 26 different countries, they focus on the customer and imagine how healthcare will be delivered in the future to develop tools and future-proof technologies. Their customers include physicians’ practices, community clinics, skilled nursing facilities and emergency departments—where 95 percent of patients first seek medical treatment.Welch Allyn combines a practical understanding of clinical needs with a visionary spirit to develop solutions that assess, diagnose, treat and manage a wide variety of illnesses and diseases.About Hill-RomHill-Rom is a leading global medical technology company with more than 7,000 employees in over 100 countries. We partner with health care providers by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Clinical Workflow, Surgical Safety and Efficiency, and Respiratory Health.Hill-Rom people, programs, and product brands work towards one mission:Every day, around the world, we enhance outcomes for our patients and their caregivers.