Hill-Rom Holdings, a maker of hospital equipment, wound-care and surgical products, said it would buy privately held Welch Allyn for about $2.05 billion to expand into the point-of-care diagnostics market.

Welch Allyn makes medical equipment that allow physicians to carry out diagnostic tests at or near the site of patient care.

Welch Allyn shareholders will receive $1.625 billion in cash and about 8.1 million newly-issued shares of Hill-Rom common stock.

At the closing of the deal, expected in September, Welch Allyn’s 75 shareholders will own about 13% of the combined company.