General Electric (NYSE:GE) said today it is selling its value-based healthcare division to private equity investment firm Veritas Capital in a $1.05 billion cash deal.
Through the deal, GE will divest itself of the enterprise financial management, ambulatory care management and workforce management divisions that make up its value-based healthcare business, the company said.
“We’re confident this business will flourish under Veritas Capital, while GE Healthcare will continue to significantly invest in core digital solutions, such as smart diagnostics, connected devices, AI and enterprise imaging, that will drive precision health for our customers. We will continue to lead in data analytics, command centers, advanced visualization and image management tools to create better customer and patient outcomes,” GE Healthcare prez & CEO Kieran Murphy said in a press release.
The acquisition follows investments in Truven Health Analytics and Verscend Technologies by Veritas, GE said. Both companies plan to work together to facilitate the transition of the businesses into a standalone company.
“Veritas Capital is the ideal firm to provide the focus and investment to take our business to the next level of scale and performance. Our team has significant knowledge and expertise in the healthcare IT space, and by operating as a standalone business under Veritas’ ownership, we now have the opportunity to further revitalize our product portfolio and pursue complementary acquisitions to better serve patients, providers and payers. With Veritas’ support and resources, we are excited to continue deepening our commitment and capabilities to help healthcare providers manage their financial, clinical, and employee workflows across the continuum of care,” GE Healthcare value-based care solutions prez Jon Zimmerman said in a prepared statement.
“We see a tremendous opportunity to invest in this business and partner with management to take advantage of a $9 billion market that continues to benefit from favorable sector trends, particularly a real and urgent need to digitalize our healthcare system. Similar to our previous healthcare technology investments, all of which have been corporate carve outs, we will be deeply customer-focused, and invest significantly in people, technology and infrastructure to support the evolving requirements of the company’s diverse customer group. GE has built a highly regarded platform with a strong product set and an experienced team, and we look forward to supporting management as they redouble their focus on delivering superior value to all customers,” Veritas Capital managing partner and CEO Ramzi Musallam said in prepared remarks.
GE said it expects the deal to close during the third quarter of this year.
In February, GE Healthcare said it is supplying a custom advanced analytics solutions for both the Olympic Winter Games in PyeongChang this year and the Olympic Games in Tokyo in 2020.
