The hospital technology business that makes up about 10 per cent of Hills Ltd will be merged with US firm Lincor Solutions to form a new $150 million company that will be listed on the Australian Securities Exchange.

Hills chief financial officer Gareth Turner – who is set to take the same role at newly created company Lincor Ltd after the proposed ASX listing by December –said on Tuesday that while health technology was a growth engine for Hills, the merger would deliver better value for shareholders.