Sam Brusco, Associate Editor01.21.22
IBM began a deal to sell its healthcare data and analytics assets currently part of the Watson Health business to global investment firm Francisco Partners. Assets include Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings.
The transaction is expected to close in this year’s second quarter. Financial terms were not disclosed.
“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,” Tom Rosamilia, Senior Vice President, IBM Software told the press. “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 has invested in over 400 technology companies since its launch over 20 years ago. The company has strong experience in healthcare technology.
Rumors have swirled from previous attempts by the tech giant to move its Watson Health unit but nothing had materialized.
“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,” said Ezra Perlman, Co-President at Francisco Partners. “IBM built a market leading team and provides its customers with mission critical products and outstanding service.”
Justin Chen, Principal at Francisco Partners, added, “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 realize its full potential, and delivering enhanced value to customers and partners.”
The current IBM management team will continue in similar roles in the new standalone company.
The transaction is expected to close in this year’s second quarter. Financial terms were not disclosed.
“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,” Tom Rosamilia, Senior Vice President, IBM Software told the press. “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 has invested in over 400 technology companies since its launch over 20 years ago. The company has strong experience in healthcare technology.
Rumors have swirled from previous attempts by the tech giant to move its Watson Health unit but nothing had materialized.
“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,” said Ezra Perlman, Co-President at Francisco Partners. “IBM built a market leading team and provides its customers with mission critical products and outstanding service.”
Justin Chen, Principal at Francisco Partners, added, “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 realize its full potential, and delivering enhanced value to customers and partners.”
The current IBM management team will continue in similar roles in the new standalone company.