Francisco Partners acquire part of IBM’s Watson Health business

Francisco Partners has signed an agreement with IBM to acquire their healthcare data and analytics assets that are currently part of the Watson Health business.

The assets include extensive and diverse data sets and products, such as Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings.

The deal is expected to be completed in the second quarter of this year, with the financial terms of the agreement remaining undisclosed.

Tom Rosamilia, senior vice president of IBM Software, said: “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.”

Francisco Partners, a leading global investment firm that specialises in partnering with technology and technology-enabled businesses, launched over 20 years ago and has invested in over 400 technology companies.

They are one of the most active and longstanding investors in the technology industry, with more than $30billion in assets under management. Their acquisition of IBM’s healthcare data and analytics assets comes just weeks after IBM were reportedly looking to sell their healthcare division, Watson Health.

Ezra Perlman, co-president at Francisco Partners, added: “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.

“IBM built a market leading team and provides its customers with mission critical products and outstanding service.”

Francisco Partners has widespread experience in healthcare technology and has invested in many businesses within the sector. Select current and past investments in the industry include Availity, eSolutions, Capsule, GoodRx, Landmark, QGenda, Trellis, and Zocdoc.

Under the terms of the agreement with IBM, the current management team will continue in similar roles in the new standalone company, serving existing clients in life sciences, provider, imaging, payer and employer, and government health and human services sectors.