ARMONK, N.Y. and SAN FRANCISCO — The investment firm Francisco Partners is set to acquire to health care data and analytics assets from IBM that are part of the Watson Health business.
IBM and Francisco Partners have signed a definitive agreement for the deal, according to the companies this month.
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.
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Under the terms of the agreement, the current management team will continue in similar roles in a new stand-alone company, serving existing clients in life sciences, provider, imaging, payer and employer, and government health and human services sectors.
The transaction is expected to close in the second quarter of 2022 and is subject to customary regulatory clearances. Financial terms of the transaction 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,” said Tom Rosamilia, SVP, IBM Software.
“IBM remains committed to Watson, our broader AI business, and to the clients and partners we support in health care IT. Through this transaction, Francisco Partners acquires data and analytics assets that will benefit from the enhanced investment and expertise of a health care-industry-focused portfolio.”
Ezra Perlman, co-president at Francisco Partners, said, said his firm “followed IBM’s journey in health care data and analytics for a number of years and have a deep appreciation for its portfolio of innovative health care products.”
“IBM built a market-leading team and provides its customers with mission-critical products and outstanding service,” Perlman said.
Justin Chen, principal at Francisco Partners, added that 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 stand-alone company focus on growth opportunities to realize its full potential, and delivering enhanced value to customers and partners,” Chen said.
IBM’s acquisition spree
IBM’s sale of these health care data and analytics assets to Francisco Partners stands in contrast to its recent wave of acquisitions.
IBM has made over 20 acquisitions since Arvind Krishna became IBM’s CEO in April 2020, including another in the data analytics market when it acquired the software maker Envizi.
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