IBM (NYSE: IBM) announced today that it will sell healthcare data and analytics assets from its Watson Health business to Francisco Partners.
Financial terms were not disclosed for the deal, expected to close in the second quarter of this year subject to customary regulatory clearances. But Bloomberg cites people familiar with the plans saying that the deal size is close to $1 billion.
“Today’s agreement with Francisco Partners is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and AI strategy,” said Tom Rosamilia, SVP of IBM Software.
“IBM remains committed to Watson, our broader AI business, and to the clients and partners we support in healthcare IT. Through this transaction, Francisco Partners acquires data and analytics assets that will benefit from the enhanced investment and expertise of a healthcare-industry-focused portfolio,” Rosamilia said in a news release.
Current management will remain in similar roles in the new standalone company created out of the deal.
“Partnering with corporations to execute divisional carve-outs has been a core focus of Francisco Partners,” said Justin Chen, principal at the firm. “We look forward to supporting the talented employees and management team, helping the standalone company focus on growth opportunities to realize its full potential, and delivering enhanced value to customers and partners.”