IBM to Acquire Truven Health Analytics for $2.6 Billion

Advertisement
By Jing Cao, Bloomberg | Updated: 19 February 2016 10:05 IST
IBM to Acquire Truven Health Analytics for $2.6 Billion
IBM has agreed to purchase Truven Health Analytics for $2.6 billion (roughly Rs. 17,858 crores), its fourth acquisition in less than a year aimed at expanding in the business of combing through health-related data. The shares rose the most in three years.

Closely held Truven provides cloud-based data management and analytics to more than 8,500 health-care clients, including hospitals, insurers and government agencies, the companies said Thursday in a statement. The deal is expected to be completed later this year, they said. Veritas Capital, a New York-based private equity firm, currently owns Truven, according to IBM.

The acquisition of Ann Arbor, Michigan-based Truven will be IBM's biggest purchase in the three years under Chief Executive Officer Ginni Rometty. IBM has invested heavily in data and technology to improve its analytics offerings to the health-care industry, centered on its Watson Health business unit. Watson technology uses machine learning algorithms to provide prescriptive and predictive analyses. With more data, these algorithms work better and can provide more useful insights.

"Most of the data in health-care is in disparate databases," Deborah DiSanzo, General Manager at IBM Watson Health, said in an interview. "The strategy of IBM is to bring this data together and democratize it so that both IBM and our ecosystem of partners can build health solutions on top of it."

IBM rallied 5.7 percent to $133.31 at 10:16 a.m. in New York. The shares had declined 8.4 percent this year through Wednesday.

The success of Watson which Rometty has called her moonshot is integral to IBM's future as the company struggles to reverse sales declines for the past 15 consecutive quarters. The Armonk, New York-based company last year bought Merge Healthcare for $1 billion (roughly Rs. 6,868 crores) to gain medical-imaging data and technology. IBM also acquired health-care big data analytics provider Explorys and population health technology seller Phytel.

After integrating Truven's data from about 215 million individuals, IBM will have amassed various kinds of health-related information from 300 million patients, the company said. IBM intends to use the data from Truven, Merge Healthcare, Explorys and Phytel to focus on creating insights into value-based care, which the US has been shifting toward and allows patients to pay for health-care based on outcomes.

Advertisement

All areas in health-care are "converging around value-based health-care delivery," Truven CEO Mike Boswood said in an interview. "As part of Watson Health, we will be able to far more effectively contribute to how those changes are implemented."

© 2016 Bloomberg L.P.

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: IBM, Internet, Truven Health Analytics
Advertisement

Related Stories

Popular Mobile Brands
  1. Vodafone Idea (Vi) Rolls Out 5G Services in These Nine Cities
  2. Flipkart Freedom Sale 2025 to Start Tonight; Smartphone Deals Teased
  3. Insta360 Go Ultra Could Offer Up to 4K 60FPS Video Recording
  4. Amazon Great Freedom Festival Sale: Best Deals on Laptops under Rs. 30K
  5. Google Pixel 9a Review: A Really Good Buy
  1. MIT Just Proved Einstein Wrong in the Famous Double-Slit Quantum Experiment
  2. PSR J0922+0638 Pulsar Keeps Glitching Every 550 Days, Scientists Are Intrigued
  3. Starlink’s Unintended Signals Threaten Astronomical Research, Study Finds
  4. DogMan OTT Release Date: When and Where to Watch This American Animated Movie Online?
  5. Love Hurts OTT Release Date: When and Where to Watch it Online?
  6. Xbox Game Pass Hit Nearly $5 Billion in Revenue for the First Time in FY 2025, Microsoft Says
  7. Samsung Tri-Fold Phone to Launch in H2 2025; Galaxy S25 FE Teased to Debut Earlier
  8. Flipkart Freedom Sale 2025 to Start Tonight With Discounts on iPhone 16, Galaxy S24, Nothing Phone 3a, More
  9. Vodafone Idea (Vi) 5G Services Rolling Out in Surat, Meerut, and Seven Other Cities With Special Introductory Offers
  10. Qualcomm Said to be Developing Another High-End Chipset; Could Offer Snapdragon 8 Elite-Level Performance
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.