GE Healthcare to acquire Vital Signs

GE Healthcare has signed a definitive merger agreement to purchase Vital Signs as part of plans to expand its offerings in monitoring, anaesthesia and respiratory care.

Under the terms of the deal, GE Healthcare will pay shareholders in Vital Signs $74.50 (37.38 pounds) per share in cash.

Vital Signs has a wide product range of novel single-patient use products in a number of care areas, including emergency medicine, sleep therapy, respiratory care and anaesthesia.

Its products offer improved patient care features and significant cost advantages while also reducing the chance of infection transmission between patients.

The deal is subject to approval from regulators and shareholders in Vital Signs, while the directors at the company and at GE have given their approval for the transaction.

John Dineen, president and chief executive officer of GE Healthcare, said: “This acquisition is consistent with GE’s strategy to invest in high-technology, innovative businesses that deliver top-line growth, earnings expansion and expanded margins.”

He added Vital Signs has consistently experienced growth at double-digit rates while posting strong operating margins.

Mr Dineen was appointed as president and chief executive officer of GE Healthcare earlier this month, with the company stating his appointment would aid continued global business growth at the firm.