IBM Looking to Buy Merge Healthcare For $1 Billion
IBM is currently planning to settle a deal to buy Merge Healthcare for $1 Billion. The goal here is to bring image focused features to the Watson Health platform.
The terms of the deal were revealed yesterday and the deal is expected to close later this year. Details reveal that Merge shareholders will get $7.13 per share in cash. If the deal finalizes, this will be IBM’s third biggest health related acquisition.
Merge’s technology is being used at 7,500 U.S health care sites, and provides medical image handling and processing. The deal is IBM’s bid to expand its presence in healthcare sector.
John Kelly, senior vice president, IBM Research and Solutions Portfolio said:
As a proven leader in delivering healthcare solutions for over 20 years, Merge is a tremendous addition to the Watson Health platform. Healthcare will be one of IBM’s biggest growth areas over the next 10 years, which is why we are making a major investment to drive industry transformation and to facilitate a higher quality of care Watson’s powerful cognitive and analytic capabilities, coupled with those from Merge and our other major strategic acquisitions…
According to research conducted by IBM, 90% data stored by healthcare institutions is imagery. 100,000 images a day are handled in some hospital emergency rooms.
Only time will tell how this strategy will do for IBM, but it definitely sounds promising.