IBM sells Watson Health data and analytics business to Francisco Partners
IBM is selling its healthcare data and analytics business, part of Watson Health, to global investment firm Francisco Partners. announced on Friday.
Armonk, New York-based IBM and San Francisco-based Francisco Partners have signed a definitive agreement and expect the deal to close in the second quarter of this year, subject to the usual regulatory approvals. The companies did not disclose financial terms.
“Today’s agreement with Francisco Partners is a clear next step as IBM further focuses on our hybrid cloud and platform-based AI strategy,” said Tom Rosamilia, senior vice president of IBM Software. “IBM remains committed to Watson, our broader AI business, and the customers and partners we support in healthcare IT.”
In its two decades of operations, Francisco Partners has invested in over 400 technology companies, including eSolutions, Capsule, GoodRx and Zocdoc.
“We’ve been following IBM’s evolution in healthcare data and analytics for a number of years and are deeply indebted to its portfolio of innovative healthcare products,” said Ezra Perlman, co-president of Francisco Partners. “IBM has built a market-leading team and delivers mission-critical products and superior service to its customers.”
Under the agreement, the current management team will continue to perform similar functions in the new, separate company serving existing clients.
The news comes after IBM sold three components of its Watson Health portfolio to group purchasing organization Vizient in 2020: ActionOI, CareDiscovery and Market Expert.