Francisco Partners, a global investment firm, has acquired a selection of tech giants IBM’s healthcare data and analytics assets.
The two companies have penned an agreement that will see Francisco Partners snap up a number of data sets and products for its portfolio, including Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings – which are currently part of IBM’s Watson Health offering.
IBM and Francisco Partners, which specialises in ‘partnering with technology businesses’, announced last week that the companies have signed a ‘definitive agreement’, with the transaction ‘expected to close in the second quarter of this year’, subject to customary regulatory clearances.
Financial terms of the deal were not publicly disclosed but its believed that the agreement will include the current management team continuing in similar roles to serve existing clients.
Tom Rosamilia, Senior Vice President of IBM Software, claims that the move will allow IBM to focus on its cloud and AI ambitions. Last year, the company announced a new £210 million digital innovation centre, which will focus on advancing AI and quantum computing capabilities, in partnership with the UK’s Science and Technology Facilities Council (STFC), and for which IBM will contribute £38 million in funding.
Rosamilia said of the Francisco Partners acquisition: “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.
“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.”
Since launching over 20 years ago, Francisco Partners has invested in over 400 technology companies, with current and past investments including Availity, eSolutions, Capsule, GoodRx, Landmark, QGenda, Trellis, and Zocdoc.
Ezra Perlman, Co-President at Francisco Partners, commented: “We have followed IBM’s journey in healthcare data and analytics for a number of years and have a deep appreciation for its portfolio of innovative healthcare products.”
Justin Chen, Principal at Francisco Partners, added: “Partnering with corporations to execute divisional carve-outs has been a core focus of Francisco Partners. We look forward to supporting the talented employees and management team, helping the standalone company focus on growth opportunities to realise its full potential, and delivering enhanced value to customers and partners.”
