Ge said it has sold off part of its healthcare assets to Veritas Capital for $1.05 billion.
The company said the unit to be sold is its Enterprise Financial Management, Ambulatory Care Management and Workforce Management assets comprising GE Healthcare’s Value-Based Care Division for $1.05 billion in cash.
“Veritas Capital is the ideal firm to provide the focus and investment to take our business to the next level of scale and performance. Our team has significant knowledge and expertise in the healthcare IT space, and by operating as a standalone business under Veritas’ ownership, we now have the opportunity to further revitalize our product portfolio and pursue complementary acquisitions to better serve patients, providers and payers,” said Jon Zimmerman, Vice President and General Manager of Value-Based Care Solutions at GE Healthcare. “With Veritas’ support and resources, we are excited to continue deepening our commitment and capabilities to help healthcare providers manage their financial, clinical, and employee workflows across the continuum of care.”
Ramzi Musallam, CEO and Managing Partner of Veritas Capital, 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 favorable sector trends, particularly a real and urgent need to digitalize our healthcare system. Similar to our previous healthcare technology investments, all of which have been corporate carve outs, we will be deeply customer-focused, and invest significantly in people, technology and infrastructure to support the evolving requirements of the company’s diverse customer group. GE has built a highly regarded platform with a strong product set and an experienced team, and we look forward to supporting management as they redouble their focus on delivering superior value to all customers.”
Kieran Murphy, President & CEO of GE Healthcare, said, “We’re confident this business will flourish under Veritas Capital, while GE Healthcare will continue to significantly invest in core digital solutions, such as smart diagnostics, connected devices, AI and enterprise imaging, that will drive precision health for our customers. We will continue to lead in data analytics, command centers, advanced visualization and image management tools to create better customer and patient outcomes.”
The healthcare technology space has been a key focus area for Veritas Capital, as illustrated by its recent investments in Truven Health Analytics and Verscend Technologies. The firm has a robust track record of strategically transforming businesses in the space by working closely with management teams to enhance customer benefits through accelerated growth, improved efficiencies, and the development of innovative products and services. Veritas will work alongside the GE management team to ensure a seamless transition of the business into a standalone company.
The transaction is expected to close during the third quarter of 2018, subject to customary closing conditions and regulatory approvals. Morgan Stanley and Keval Health are acting as financial advisors to GE in the transaction. Goldman, Sachs & Co. and William Blair & Company are acting as financial advisors and Schulte Roth & Zabel LLP is serving as legal counsel to Veritas Capital in the transaction.
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