Private equity investment firm Veritas Capital announced that it will acquire part of General Electric’s (NYSE:GE) healthcare division for US$1.05bln in cash.
Veritas acquired GE’s value-based care division, including revenue-cycle, ambulatory care management, and workforce management software unit.
GE Healthcare, valued at US$19bln, has provided medical imaging equipment internationally for over 100 years. This move will transition the value-based care division into a standalone company.
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Ramzi Musallam, CEO and Managing Partner of Veritas Capital, said that he viewed the acquisition as a way to take part in the US$9bln health care market. He pointed to the opportunity to fill “the real and urgent need to digitize our health care system.”
Veritas Capital already has a foot in the door when it comes to health care technology. The firm has also invested in Truven Health Analytics, which is part of IBM (NYSE:IBM) Watson Health, and Verscend Technologies, a Massachusetts-based health care information technology company.
The transaction should close during the third quarter of 2018.