South Australia's Hills Ltd has deferred the proposed merger of its Hills Health Solutions (HHS) division with patient infotainment system vendor Lincor until next year, citing current market volatility.

Hills announced in September that it planned to hive off HHS and merge it into a new entity called Lincor Limited, with the company intending to issue an initial public offering and list on the ASX. Shares in the new company would go to existing Hills shareholders as part of the demerger of HHS.