Veritas Capital to acquire a GE Healthcare unit for $1 billion

April 4, 2018

Private equity firm Veritas Capital plans to acquire a healthcare technology unit from General Electric, the firms said April 2.

Veritas will buy GE’s revenue-cycle, ambulatory care, and workforce management software unit, which includes the value-based care division, for $1.05 billion in cash. In a statement, Veritas CEO Ramzi Musallam said the firm sees a “tremendous opportunity” to invest in the business and a $9 billion market.

Kieran Murphy, CEO of GE Healthcare, the $19 billion health-care division of the conglomerate, said the unit will continue to “significantly invest” in core digital solutions like smart diagnostics and artificial intelligence.

“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,” Jon Zimmerman, vice president and general manager of value-based care solutions at GE Healthcare, said in a statement.

The deal is expected to close in the third quarter.

General Electric’s CEO, John Flannery, has sought to reshape the company since taking over last summer. GE has been under pressure to make changes, with its stock price down more than 20 percent year to date.

CNBC has the article

Sponsored Recommendations

A Cyber Shield for Healthcare: Exploring HHS's $1.3 Billion Security Initiative

Unlock the Future of Healthcare Cybersecurity with Erik Decker, Co-Chair of the HHS 405(d) workgroup! Don't miss this opportunity to gain invaluable knowledge from a seasoned ...

Enhancing Remote Radiology: How Zero Trust Access Revolutionizes Healthcare Connectivity

This content details how a cloud-enabled zero trust architecture ensures high performance, compliance, and scalability, overcoming the limitations of traditional VPN solutions...

Spotlight on Artificial Intelligence

Unlock the potential of AI in our latest series. Discover how AI is revolutionizing clinical decision support, improving workflow efficiency, and transforming medical documentation...

Beyond the VPN: Zero Trust Access for a Healthcare Hybrid Work Environment

This whitepaper explores how a cloud-enabled zero trust architecture ensures secure, least privileged access to applications, meeting regulatory requirements and enhancing user...