Medical products company Baxter International Inc (NYSE:BAX) announced on Tuesday that it has entered into a definitive agreement to acquire Cheetah Medical, a provider of non-invasive hemodynamic monitoring technologies.

The company said that this transaction consists of an upfront cash consideration of USD190m, with potential for an additional USD40m based on clinical and commercial milestones.

Baxter added that the acquisition of Cheetah Medical will accelerate its presence in the specialized patient monitoring space with key technology used to guide fluid management. Cheetah Medical's technology is data-driven and tailored to individual patient needs. This integrated approach to medication delivery and patient monitoring enables clinicians to be better able to manage patients with sepsis, acute kidney injury (AKI) and other critical conditions, as well as patients undergoing surgery.

In addition, Cheetah Medical's technology will serve as a foundational component of a novel platform of specialised patient monitoring technologies currently under development. This platform will join other Baxter devices and products, including IV infusion pumps, IV fluids and medications, as part of an integrated system designed to aid and inform therapeutic decisions.

Subject to customary closing conditions, the proposed acquisition is expected to close in the fourth quarter of 2019 and the company expects the acquisition to be immaterial to earnings in 2019 and 2020.