IBM is selling parts of its Watson Health Unit to the global investment firm Francisco Partners, the companies confirmed Friday. The deal is expected to close in the second quarter of this year. Terms were not disclosed.
Under the agreement, Francisco Partners will acquire specific healthcare data and analytics assets that are part of the Watson Health business. These include data sets and products like Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex and imaging software offerings.
Francisco Partners plans to turn these assets into a standalone company under the current management team. They’ll serve their existing clients in life sciences, provider, imaging, payer and employer, and government health and human services sectors.
Watson Health was once one of IBM’s “strategic imperatives,” but it struggled to grow and faced criticism that the cognitive computing platform was costly and hard for customers to implement. In 2018, IBM laid off a percentage of its Watson Health workforce.
“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,” Tom Rosamilia, SVP of IBM Software, said in a statement. “IBM remains committed to Watson, our broader AI business, and to the clients and partners, we support in healthcare IT. Through this transaction, Francisco Partners acquires data and analytics assets that will benefit from the enhanced investment and expertise of a healthcare industry focused portfolio.”
Disclaimer : OneNewsTech.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us – firstname.lastname@example.org. The content will be deleted within 24 hours.