IBM today announced an agreement in which Francisco Partners will acquire its healthcare data and analytics assets, in a transaction expected to close in the second quarter of this year.
The assets are currently part of Watson Health and include datasets and products such as Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex and imaging software.
Although IBM did not confirm the value of the sale, Bloomberg said it was valued at more than $1 billion.
The IBM division will become a stand-alone business, retaining Watson Health’s current management team and existing customers.
“Today’s agreement with Francisco Partners is a clear next step as IBM focuses even more on our hybrid cloud and platform-based AI (artificial intelligence) strategy,” said Tom. Rosamilia, senior vice president of IBM Software. “IBM remains committed to Watson, our broader AI business, and to the customers 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-focused portfolio.
Francisco Partners is a San Francisco-based global investment firm with over $30 billion in assets. She specializes in technology ventures and technology investments. His experience with medical technology and healthcare companies includes his current and past investments in Availity, eSolutions, Capsule, GoodRx, Landmark, QGenda, Trellis and Zocdoc.
“We have followed IBM’s journey in healthcare data and analytics for several years and deeply appreciate its portfolio of innovative healthcare products,” said Ezra Perlman, co-president of Francisco. “IBM has built a market-leading team and provides customers with mission-critical products and exceptional service.”