General Electric will sell certain information technology assets in its health care business to Veritas Capital for $1.05 billion in its latest step to “simplify” its business.
The agreement is for the sale of its Enterprise Financial Management , Ambulatory Care Management and Workforce Management assets comprising GE Healthcare’s Value-Based Care Division.
The sale will enable GE “to further revitalize our product portfolio and pursue complementary acquisitions to better serve patients, providers and payers,” according to Jon Zimmerman, vice president and general manager of GE’s value-based care unit.
The transaction is expected to close during the third quarter of 2018, subject to customary closing conditions and regulatory approvals.
GE Healthcare is the $19 billion healthcare business of GE. The healthcare technology space has been a key focus for Veritas Capital, a private equity firm that invests in companies that provide critical products and services.
GE’s shares were lower on Monday.