The transaction is expected to help IBM become even more focused on its platform-based hybrid cloud and AI strategy
IBM to offload its healthcare data and analytics assets to Francisco Partners. (Credit: Mark Ahsmann/Wikimedia Commons)
IBM has agreed to sell its healthcare data and analytics assets that are part of its Watson Health unit to Francisco Partners, a global investment firm, for an undisclosed price.
The deal includes data sets and products such as Health Insights, Clinical Development, MarketScan, Micromedex, and Social Program Management, along with imaging software offerings.
In February 2021, it was reported across the media that IBM is considering the sale of its Watson Health business in a move to streamline the company and concentrate on cloud computing operations.
The business involved in the transaction is a data, analytics, and technology partner for the health industry. It makes use of artificial intelligence (AI) to help hospitals, insurance firms, and pharma companies to manage their data.
IBM software senior vice president Tom Rosamilia, 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.”
Francisco Partners, which was launched more than 20 years ago, is said to have invested in more than 400 technology companies. Its previous healthcare technology and healthcare investments include Availity, Capsule, eSolutions, Landmark, QGenda, GoodRx, Trellis, and Zocdoc.
Francisco Partners principal Justin Chen said: “Partnering with corporations to execute divisional carve-outs has been a core focus of Francisco Partners. We look forward to supporting the talented employees and management team, helping the standalone company focus on growth opportunities to realise its full potential, and delivering enhanced value to customers and partners.”
As per the terms of the agreement, the current management team of the Watson Health business will continue in similar roles in the new standalone firm.
The new entity will serve existing clients in life sciences, provider, government health, imaging, payer and employer, and human services sectors.
The deal, which is subject to receipt of customary regulatory approvals, is anticipated to close in Q2 2022.