GE Healthcare to sell IT unit to private equity firm for $1 billion

GE Healthcare will divest its value-based care division to private equity firm Veritas Capital for $1.05 billion in cash, the companies announced. The division houses GE Healthcare's financial management, ambulatory care and workforce management software assets.

Kieran Murphy, CEO of GE Healthcare, remarked that "GE Healthcare will continue to significantly invest in core digital solutions, such as smart diagnostics, connected devices, AI and enterprise imaging." He added that "we will continue to lead in data analytics, command centres, advanced visualisation and image management tools to create better customer and patient outcomes." Meanwhile, Jon Zimmerman, general manager of value-based care solutions, said "by operating as a standalone business under Veritas' ownership, we now have the opportunity to further revitalise our product portfolio and pursue complementary acquisitions."

A Veritas spokesman noted that the value-based care division's management team and 1300 employees, located primarily in the US and India, will "transition to Veritas intact" after the acquisition closes, which is expected during the third quarter.

Commenting on the deal, Ramzi Musallam, Veritas Capital chief executive, said "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 favourable sector trends, particularly a real and urgent need to digitalise our healthcare system."

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