GE Selling Off Healthcare Unit for $1 Billion - NECN


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GE Selling Off Healthcare Unit for $1 Billion



    GE Selling Off Healthcare Unit for $1 Billion
    Boston Globe via Getty Images
    General Electric has opened its new headquarters in Fort Point on Farnsworth Street in Boston, Aug. 22, 2016.

    General Electric is selling off one of its healthcare units for over $1 billion.

    According to CNBC, Veritas Capital, a private equity firm, plans to acquire a healthcare technology unit from GE.

    Veritas will buy GE's revenue-cycle, ambulatory care and workforce management software unit -- which includes the value-based care division -- for $1.05 billion in cash.

    Veritas CEO Ramzi Musallam said in a statement that the firm sees a "tremendous opportunity" to invest in the business and the $9 billion healthcare market.

    The healthcare division of GE is worth $19 billion. Kieran Murphy, CEO of GE Healthcare, said that the unit will continue to "significantly invest" in core digital solutions like smart diagnostics and artificial intelligence.

    The deal, which is expected to close in the third quarter, is part of the reshaping efforts of CEO John Flannery. He's been under pressure to make changes since taking over last summer, with the GE stock price down 20 percent from this time last year.

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