Medical supplies provider Baxter International Inc has approached medication management software vendor Omnicell Inc with an offer to acquire it for more than $5 billion, people familiar with the matter said on Tuesday.
There is no certainty that Omnicell will engage in negotiations or that any deal will be reached, the sources said, asking not to be identified because the matter is confidential.
Baxter’s offer is in excess of $120 per share, one of the sources added. Omnicell’s shares ended trading on Tuesday at $109.88, an all-time closing high.
Baxter and Omnicell did not immediately respond to requests for comment.
Baxter has seen a spike in demand for some of its medical devices in the COVID-19 pandemic, including for its blood purification systems PrisMax and Prismaflex, which are used to treat acute kidney injury and other conditions.
Still, the Deerfield, Illinois-based company has been looking for new avenues to broaden its portfolio given its exposure to the low-growth U.S. hospital sector.
Based in Mountainview, California, Omnicell provides automation and analytics solutions to more than 7,000 healthcare facilities worldwide. Its shares are up by more than a third this year, as demand for its software increased.
Source: Reuters.com