Technology giant IBM will be selling its healthcare data and analytics assets, which is part of the Watson Health Business to global investment firm Francisco Partners. However, the two parties did not disclose the financial terms of the acquisition.
The transaction is expected to close in the second quarter of this year and is subject to customary regulatory clearances. Under the terms of the agreement, the current management team will continue in similar roles in the new standalone company, serving existing clients in life sciences, provider, imaging, payer and employer, and government health and human services sectors.
“The agreement with Francisco Partners is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and AI strategy,” said Tom Rosamilia, SVP, IBM Software. “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.”
The assets acquired by Francisco Partners include extensive and diverse data sets and products, including Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings.
The 20-year-old investment firm has invested in over 400 technology companies. Francisco Partners has extensive experience in healthcare technology and its healthcare investments have focused on companies that are leveraging technology to provide innovative products and solutions to the healthcare ecosystem including patients, providers, payers, pharma, life sciences and governments. Select current and past investments in the sector include Availity, eSolutions, Capsule, GoodRx, Landmark, QGenda, Trellis, and Zocdoc.
“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.”