Reflecting the trend of consolidation among long-term care medical device vendors, Hill-Rom Holdings Inc. announced it is buying New York-based Welch Allyn for $2.05 billion. The deal is expected to close at the end of September.

Welch Allyn shareholders will receive $1.625 billion in cash and approximately 8.1 million newly issued shares of Hill-Rom common stock. Around 75 Welch Allyn shareholders will own 13% of the combined company.

Hill-Rom estimates the combined company will have $2.6 billion in revenues and generate more than $500 million in adjusted EBITDA. It also expects to save at least $40 million by 2018 through “facility optimization, procurement efficiencies and general and administrative expense reductions,” the company said.

Welch Allyn’s portfolio includes a focus on brands in hospital and physician offices. The acquisition will allow let Hill-Rom to grow its product portfolio, said John J. Greisch, the company’s president and CEO. He will retain the titles in the combined company, which will be headquartered in Chicago. Certain Welch Allyn senior management members are expected to join the executive team.

“Hill-Rom has aggressively pursued external growth opportunities that leverage Hill-Rom’s existing channel strength to advance our strategic objectives of being a stronger, more diversified organization with the scale, resources and geographic reach to drive value across our business,” he said.

Hill-Rom intends to “maintain a major presence in Skaneateles Falls” and to “preserve the highly respected Welch Allyn name,” he added.

The new company will have a combined 10,000 employees in 30 countries.

Even before the acquisition, the company was having a solid year, with reported revenue growth of up to 11% and cash flow from operations at $250 million for FY 2015.

Goldman, Sachs & Co. is the financial advisor to Hill-Rom, and Winston & Strawn is its legal counsel. Barclays is the financial advisor to Welch Allyn, and Cravath, Swaine & Moore is its legal counsel.