The Alpharetta, Ga.-based company said it sold its previous IT systems alongside its surgical and infection prevention business to Owens & Minor (NYSE:OMI) in a deal worth $710 million, which it announced last November.
The purchase amount included the sales of its IT system, which Halyard Health said it was looking to migrate away from to a system that is “more appropriate for its business and size,” according to an SEC filing.
Haylard said that it expects between $30 million and $35 million of the IT expenses will qualify for capitalization, while the remainder will be expensed as incurred, according to the filing.
The project is expected to be completed by the end of 2019, and once complete, the company said it expects it will saive between $15 million and $19 million annually. Other IT-related costs are expected to be reduced by between $13 million and $17 million per year following the closure of its divestiture of the S&IP biz.
Halyard said it will disclose any additional developments in the restructuring when they arise, according to an SEC filing.
Earlier this month, Halyard Health announced it is suing its former parent company Kimberly-Clark seeking to clear Halyard’s responsibility to pay for $354 million in damages in a fraud case decided last April.