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Sunday, May 29, 2022

IBM sells Watson Health to a private equity firm.

IBM is selling its data and analytics business to Watson Health, the latest step in the company’s move away from what it once called a “shot to the moon” to improve healthcare, save lives and cut medical costs.

The business is being sold at an undisclosed price to private equity firm Francisco Partners, the companies announced Friday.

Watson Health was established as a separate business in 2015. Back then, IBM spent more than $4 billion acquiring companies with medical data, payment records, and diagnostic images for hundreds of millions of patients.

IBM has been trying to find buyers for the Watson Health business for over a year now. The company was seeking a sale price of about $1 billion, The Wall Street Journal reported last year.

IBM shut down the business. In 2000, the company discontinued two cancer diagnostic products, Watson for genomics and Watson for oncology, developed with another early collaborator, Memorial Sloan Kettering Cancer Center.

Since Arvind Krishna took over as chief executive in 2000, IBM has focused on its business and scaled back operations.

Last November, IBM spun off its large technology support and back-office business, which generates $19 billion in annual revenue. The business, called Kyndryl, has lower profit margins and growth prospects than IBM’s current focus areas of cloud computing and artificial intelligence. IBM retained just under 20 percent of Kyndryl.

IBM executives described the sale of Watson Health’s assets as part of that broader strategy. Tom Rosamilia, senior vice president in charge of IBM’s software business, said the move was “a clear next step as IBM further focuses on our hybrid cloud and platform-based artificial intelligence strategy.”

World Nation News Desk
World Nation News Deskhttps://www.worldnationnews.com
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