Franklin Lakes, New Jersey-based Becton Dickinson & Co. (BD) has agreed to acquire CareFusion for $12.2 billion, or $58.00 per share. The agreement has been unanimously approved by the boards of both companies, according to a new release from BD.

BD and CareFusion make medical supplies and devices, and specialize in infection control and medication management.

"The combination of the two companies’ complementary product portfolios will offer integrated medication management solutions and smart devices, from drug preparation in the pharmacy, to dispensing on the hospital floor, administration to the patient, and subsequent monitoring," BD said in a new release. "The combination will improve the quality of patient care and reduce healthcare costs by addressing unmet needs in hospitals, hospital pharmacies and alternate sites of care to increase efficiencies, reduce medication administration errors and improve patient and healthcare worker safety."

Under the terms of the transaction, CareFusion shareholders will receive $49.00 in cash and 0.0777 of a share of BD for each share of CareFusion, or a total of $58.00 per CareFusion share based on BD’s closing price as of Oct. 3, 2014.  Upon closing, BD shareholders will own approximately 92% of the combined company and CareFusion shareholders will own approximately 8%.

CareFusion will operate as part of BD’s Medical segment, and BD said it is committed to maintaining an active presence in San Diego where CareFusion is headquartered.