This morning tech giant International Business Machines Corp.(NYSE:IBM) announced that they will take necessary steps in efforts to acquire Merge Healthcare Inc.(NASDAQ:MRGE) which is one of the main companies that provide medical images and medical systems to medical facilities. At the moment the deal is worth $1 billion and IBM stated that they have plans in combining Merge with Watson Health analytics unit which is already operating under IBM.
The details for this deal are pretty straight forward, each Merge Healthcare shareholder will receive $7.13 per share which represents an increase per share of almost 32% of yesterday’s close.
This morning shares of merge were still above the usual which is seems to be a correlation of the deal, shares of IBM showed little movement after the news but it is still hovering around the $156 mark.
IBM has always wanted to rejuvenate its health medical sector and they believe that this deal will be the one which solidifies IBM as one of the key companies in the growing sector.
Combining both Merge and Watson would lead to offer twice the services it currently has, it will be able to use medical imaging platforms and computing analytic platforms from the same source. Watson works on a cloud computing system and it also has the means of handling high volumes of data and complex questions.
It is safe to say that IBM is focusing on buying health related companies…