IBM to divest healthcare data and analytics assets to Francisco Partners
IBM has signed a deal to divest its healthcare data and analytics assets that are presently part of the Watson Health unit to global investment firm Francisco Partners.
The financial terms of the deal were not disclosed.
The assets involved in the deal are data sets and products, including Health Insights, Clinical Development, Social Program Management, MarketScan, Micromedex, as well as imaging software offerings.
Tom Rosamilia — Senior Vice President of IBM Software said: “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.
“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.”
As per the terms of the deal, the existing management team of the IBM Watson Health business will continue in identical roles in the new independent company, which will cater to existing clients in life sciences, provider, imaging, government health, payer and employer, and human services sectors.
Ezra Perlman — Co-President at Francisco Partners said: “We have followed IBM’s journey in healthcare data and analytics for a number of years and have a deep appreciation for its portfolio of innovative healthcare products.
“IBM built a market leading team and provides its customers with mission critical products and outstanding service.”
Subject to customary regulatory approvals, the deal is likely to close in Q2 2022.