GE HealthCare
(Nasdaq: GEHC)
announced today that it completed its previously announced $2.3 billion acquisition of Intelerad.
Chicago-based GE HealthCare announced in November that it agreed to buy Intelerad for $2.3 billion in an all-cash deal. It said at the time that the acquisition furthers its aim to triple its offerings of cloud-enabled products by 2028.
Intelerad provides imaging software and digital enterprise workflow solutions. it has a significant presence in outpatient ambulatory care settings. The company offers cloud-first products designed for radiology and cardiology that span the inpatient and outpatient care settings.
GE HealthCare believes that Intelerad extends its reach into high-growth specialized clinics and growing ambulatory care environments. This complements its existing strength in hospital-based imaging. Altogether, the company says it creates a comprehensive, cloud-first, AI-enabled imaging offering. It says this should help reduce imaging infrastructure costs and enable faster deployment times.
With the acquisition’s closing, Intelerad will operate as part of GE HealthCare’s imaging business. It expects to continue serving enterprise imaging solution customers in the U.S., Canada, the UK and Oceania.
GE HealthCare estimates revenues from Intelerad in the first full year of ownership to total approximately $270 million. Approximately 90% of that is recurring. The company expects adjusted EBITDA margin in excess. of 30%, with revenues set to grow in the low-double-digit range annually. GE HealthCare anticipates revenue acceleration under its ownership.
According to the. company, it expects a slightly dilutive impact on adjusted EPS in the short term. It plans to offset this with cost efficiencies before a high-single-digit return on invested capital by year five.
Commentary from GE HealthCare and Intelerad officials
Roland Rott, president and CEO, Imaging, GE HealthCare, said:
“We are excited to welcome Intelerad to the GE HealthCare team to create an end-to-end, cloud-first and AI-enabled enterprise imaging solution for customers. Intelerad’s cloud-enabled software will support GE HealthCare’s imaging technologies and AI capabilities by simplifying complex workflows, and providing patients and customers with more precise, connected care across the continuum.”
Scott Miller, CEO, Solutions for Enterprise Imaging, GE HealthCare, said:
“Intelerad enhances our ability to deliver a cloud-first enterprise imaging platform at scale. Together, we are connecting imaging across care settings with interoperable, AI-enabled solutions that simplify operations, improve clinical insight, and help our customers deliver more precise, personalized care.”
Jordan Bazinsky, CEO of Intelerad, said:
“Joining GE HealthCare accelerates our vision for a more intelligent, connected imaging ecosystem. Together, we can harness the cloud and AI to break down longstanding barriers in healthcare, empowering clinicians with faster insights and giving patients a more seamless, precise care experience.”
