The deal will give Pfizer access to Baxter's meningitis vaccine, NeisVac-C, and its encephalitis vaccine, FSME-IMMUN.
Pfizer will also get access to a portion of Baxter's facility in Austria where the vaccines are made.
The deal is expected to close by the end of the year.
Both vaccines are currently available outside the United States, primarily in a number of European markets.
Pfizer said it did not expect the deal to affect its full-year forecast.
Baxter expects the transaction to modestly dilute its fourth-quarter adjusted earnings and lower its 2015 adjusted profit by about 15 cents per share.
Pfizer, the largest U.S. drugmaker, said on Tuesday that its global vaccines business had sales of $1.1 billion in the second quarter.
Baxter had earlier posted international vaccine sales of $110 million in the second quarter.
Reporting by Anand Basu and Anjali Rao Koppala; Editing by Simon Jennings