General Electric (GE) has agreed to sell its value-based care division to private equity investment firm Veritas Capital for $1.05 billion. The division encompasses enterprise financial management, ambulatory care management, and workforce management, which all fall under the GE Healthcare brand.

“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,” says Jon Zimmerman, vice president and general manager of value-based care solutions at GE Healthcare.

“With Veritas’ support and resources, we are excited to continue deepening our commitment and capabilities to help healthcare providers manage their financial, clinical, and employee workflows across the continuum of care,” Zimmerman adds.

Ramzi Musallam, CEO and managing partner of Veritas Capital, also spoke out about the deal, commenting: “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. Moreover, Veritas will work alongside the GE management team to ensure a smooth transition of the business into a standalone company, company officials say.

The deal is slated to close in the third quarter of 2018.