Baxter International (BAX) said Tuesday it has agreed to acquire Cheetah Medical, which makes technology to monitor fluids in patients in a non-invasive way, in a deal valued at up to $230 million.
Deerfield, Ill.-based Baxter said it would pay $190 million in cash up front with an additional $40 million based on clinical and commercial milestones.
Baxter shares were more than 2.2%.
“The addition of Cheetah Medical will accelerate Baxter’s presence in the specialized patient monitoring space with key technology used to guide fluid management a critical aspect of patient care as too little or too much fluid can increase mortality and risk of complications,” Baxter said.
The company said the deal for Boston and Tel Aviv-based Cheetah, which is expected to close in the fourth quarter, will be immaterial to its earnings for this year and 2020.
“The robust capabilities and innovative monitoring technologies we will gain with the acquisition of Cheetah will be additional strategic growth drivers as we work to eliminate preventable harm and enable personalized therapy for hospitalized patients around the world,” said David Ferguson, Baxter’s general manager of medication delivery.
Baxter added that Cheetah’s technology is shifting care to fluid administration that is driven by data and the needs of the individual patient. That approach, Baxter said, allows medical professional to better manage patients with sepsis, acute kidney injury and other health issues.
Cheetah technology “will join other Baxter devices and products IV infusion pumps, IV fluids and medications as part of an integrated system designed to aid and inform therapeutic decisions,” Baxter said.
This post was originally published on Raleigh Recorder