Deal expands enterprise imaging capabilities and adds cloud-based software across care settings.
GE HealthCare has completed its acquisition of medical imaging software company Intelerad for a base purchase price of $2.3 billion in cash, the company announced.
The acquisition expands GE HealthCare’s enterprise imaging portfolio, particularly in ambulatory and teleradiology settings, and adds cloud-based software capabilities to its existing hospital-focused imaging business. The combined technologies are expected to support more integrated imaging workflows and enable broader deployment of AI-enabled tools.
“We are excited to welcome Intelerad to the GE HealthCare team to create an end-to-end, cloud-first, and AI-enabled enterprise imaging solution for customers,” says Roland Rott, president and CEO of imaging at GE HealthCare, in a release. “Intelerad’s cloud-enabled software will support GE HealthCare’s imaging technologies and AI capabilities by simplifying complex workflows and providing patients and customers with more precise, connected care across the continuum.”
GE HealthCare says the addition of Intelerad aligns with its strategy to expand digital and software-driven offerings, including cloud and AI-enabled solutions designed to improve clinical operations and connectivity across care environments.
“Intelerad enhances our ability to deliver a cloud-first enterprise imaging platform at scale. Together, we are connecting imaging across care settings with interoperable, AI-enabled solutions that simplify operations, improve clinical insight, and help our customers deliver more precise, personalized care,” says Scott Miller, CEO of solutions for enterprise imaging at GE HealthCare, in a release.
Intelerad will operate within GE HealthCare’s Imaging business and continue serving customers in the United States, Canada, the United Kingdom, and Oceania.
“Joining GE HealthCare accelerates our vision for a more intelligent, connected imaging ecosystem. Together, we can harness the cloud and AI to break down longstanding barriers in healthcare, empowering clinicians with faster insights and giving patients a more seamless, precise care experience,” said Jordan Bazinsky, CEO of Intelerad, in a release.
GE HealthCare estimates Intelerad will generate approximately $270 million in revenue in its first full year under GE ownership, with about 90% of that revenue recurring. The company said Intelerad’s EBITDA margin is expected to exceed 30%, with revenue currently growing at a low double-digit rate.
The company expects the acquisition to contribute to revenue growth and adjusted EBIT margin, while being slightly dilutive to adjusted earnings per share in the short term due to financing costs. GE HealthCare said it plans to offset those impacts through cost efficiencies and expects a high single-digit return on invested capital by year five.
The transaction was funded with cash on hand and debt financing.
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