Private equity firm Veritas Capital announced on Monday that it will acquire assets in General Electric’s (NYSE: GE) healthcare segment for $1.05 billion. The firm has been interested in the healthcare technology industry after its recent investments into Truven Health Analytics and Verscend Technologies.
Veritas will buy GE’s enterprise financial management, ambulatory care management and its workforce management assets within GE’s healthcare value-based care division.
“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.” said Ramzi Musallam, CEO and Managing Partner of Veritas Capital.
GE’s assets are focused around hospital workflow and administrative functions, but investors have said that the segment does not pair with the rest of the company’s assets, although it drove the third largest sales out of its segments in 2017.
GE’s CEO John Flannery previous stated last year that the healthcare segment would remain a focus for the company, as the company began to sell off assets amid its falling sales.
Veritas has been interested in the healthcare technology sector because it wants to be able to capitalize on the market while strategically transforming businesses by working with them to enhance customer benefits and efficiency.
Veritas will work with GE management teams to transition into a standalone company.
The transaction is expected to close in the third quarter of 2018.