Private equity firm Veritas Capital is set to acquire three units from GE Healthcare: its Enterprise Financial Management (Revenue-Cycle, Centricity Business), Ambulatory Care Management (Centricity Practice Solution) and Workforce Management (formerly API Healthcare), comprising GE’s Healthcare’s Value-Based Care Division for $1.05bn in cash.
By creating value through strategically transforming the companies in which it invests through organic and inorganic means, Veritas has continually looked at ways to support the healthcare technology space. Its recent investments in Truven Health Analytics and Verscend Technologies highlight the company’s robust track record, working strategically with management teams to enhance customer benefits through accelerated growth, improved efficiencies, and the development of innovative products and services.
Through the deal, Veritas will therefore work alongside the GE management team to ensure a seamless transition of the business into a standalone company.
“Veritas Capital is the ideal firm to provide the focus and investment to take our business to the next level of scale and performance,” explained Jon Zimmerman, Vice President and General Manager of Value-Based Care Solutions at GE Healthcare.
“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.
“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.”
Harnessing data and analytics across hardware, software and biotech, GE Healthcare remains a lead provider of medical imaging equipment, with a track record of more than 100 years in the industry and over 50,000 employees across 100 countries.
“We see a tremendous opportunity to invest in this business and partner with management to take advantage of a $9bn market that continues to benefit from favourable sector trends, particularly a real and urgent need to digitalise our healthcare system,” added Ramzi Musallam, CEO and Managing Partner of Veritas Capital
“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.”
Kieran Murphy, President & CEO of GE Healthcare, said, “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 centres, advanced visualisation and image management tools to create better customer and patient outcomes.”
The deal is expected to close in the third quarter.