Baxter International Inc. is set to purchase Hill-Rom Holdings Inc. for $10.5 billion in cash. This came just a month after reports surfaced the initial offer had been rejected.

Baxter offered to acquire the medical equipment maker for $156 a share, a 7.5% premium from its close on Wednesday. The total enterprise value of the purchase, including debt, is $12.4 billion, the companies said Thursday in a statement.

Medical device and supply companies have been consolidating as they seek to sell a wider range of products to their hospital clients. Large deals such as Medtronic Plc’s $43 billion acquisition of Covidien Plc and the $25 billion purchase of St. Jude Medical Inc. by Abbott Laboratories have prompted other firms to pursue scale through acquisitions.

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