Veritas Capital Acquires IT Unit of GE Healthcare

Veritas Capital (New York City, NY, USA), a private equity investment firm, has entered into a definitive agreement with General Electric (Boston, Massachusetts, USA), to acquire the Enterprise Financial Management (Revenue-Cycle, Centricity Business), Ambulatory Care Management (Centricity Practice Solution) and Workforce Management (formerly API Healthcare) assets comprising GE Healthcare’s (Chicago, IL, USA) Value-Based Care Division for USD 1.05 billion in cash.

Veritas Capital invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers across the world, including players in the aerospace & defense, healthcare, technology, national security, communications, energy, government services and education industries. GE Healthcare is a leading provider of medical imaging equipment, harnessing data and analytics across hardware, software and biotech.

Veritas has been focusing strongly on healthcare technology and recently invested in Truven Health Analytics and Verscend Technologies. Veritas will work closely with GE’s management team to ensure a seamless transition of the business into a standalone company. The transaction is expected to close during the third quarter of 2018, subject to customary closing conditions and regulatory approvals.

“Veritas Capital is the ideal firm to provide the focus and investment to take our business to the next level of scale and performance. 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,” said Jon Zimmerman, Vice President and General Manager of Value-Based Care Solutions at GE Healthcare. “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.”

Ramzi Musallam, CEO and Managing Partner of Veritas Capital, said, “We see a tremendous opportunity to invest in this business and partner with management to take advantage of a USD 9 billion market that continues to benefit from favorable sector trends, particularly a real and urgent need to digitalize our healthcare system. 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. GE has built a highly regarded platform with a strong product set and an experienced team, and we look forward to supporting management as they redouble their focus on delivering superior value to all customers.”

Kieran Murphy, President & CEO of GE Healthcare, said, “We’re confident this business will flourish under Veritas Capital, while 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 centers, advanced visualization and image management tools to create better customer and patient outcomes.”

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