ICU Medical, Inc. and Pfizer, Inc. have entered into a definitive agreement under which ICU Medical will acquire Hospira Infusion Systems (Pfizer’s global infusion therapy business) for $1 billion. The infusion systems business includes IV pumps, solutions and devices. The union is expected to create a pure-play infusion therapy company, competitive in the U.S. and global market (with direct operations in more than 20 countries), with estimated pro forma combined revenues of about $1.45 billion. It will also “eliminate our single customer concentration issue,” according to Vivek Jain, CEO of ICU Medical.

“The combination of these two businesses is the natural evolution of a productive relationship that began more than 20 years ago when Hospira began integrating ICU Medical’s needlefree technology into their infusion offering globally,” said Jain in a press release.