Veritas Capital entered into an agreement to acquire the Value-Based Care Division assets from GE Healthcare for $1.05 billion in cash. Those assets encompass Enterprise Financial Management (Revenue-Cycle, Centricity Business), Ambulatory Care Management (Centricity Practice Solution) and Workforce Management (formerly API Healthcare).
“Veritas Capital is the ideal firm to provide the focus and investment to take our business to the next level of scale and performance. Our team has significant knowledge and expertise in the healthcare IT space, and by operating as a standalone business under Veritas’ ownership, we now have the opportunity to further revitalize our product portfolio and pursue complementary acquisitions to better serve patients, providers and payers,” said Jon Zimmerman, vice president and general manager of Value-Based Care Solutions at GE Healthcare.
Ramzi Musallam, CEO and managing partner of Veritas Capital, said, “We see a tremendous opportunity to invest in this business and partner with management to take advantage of a $9 billion market that continues to benefit from favorable sector trends, particularly a real and urgent need to digitalize our healthcare system. GE has built a highly regarded platform with a strong product set and an experienced team, and we look forward to supporting management as they redouble their focus on delivering superior value to all customers.”
The healthcare technology space has been a key focus area for Veritas Capital, as illustrated by its recent investments in Truven Health Analytics and Verscend Technologies. Veritas will work alongside the GE management team to ensure a seamless transition of the business into a standalone company.
The transaction is expected to close during Q3/18, subject to customary closing conditions and regulatory approvals. Morgan Stanley and Keval Health are acting as financial advisors to GE in the transaction. Goldman Sachs and William Blair & Company are acting as financial advisors and Schulte Roth & Zabel is serving as legal counsel to Veritas Capital in the transaction.
