NEWS8 July 2022

IBM completes health data firm sale

Healthcare M&A News North America

US – IBM’s Watson Health business has completed the sale of its healthcare data and analytics assets to global investment firm Francisco Partners.

red and white tablets spilled out of brown medicine bottle

The assets will be included in a new standalone company under the ownership of Francisco called Merative, which will be headquartered in Ann Arbor, Michigan, US.

Merative will work in areas such as life sciences, provider, imaging, health plan, employer and government health and human services.

Gerry McCarthy has been hired to lead Merative, having most recently been chief executive of eSolutions, a Francisco Partners company that was sold to Waystar in October 2020.

Before eSolutions, McCarthy was president of TransUnion Healthcare and an executive at McKesson.

Paul Roma, general manager of the Watson Health business, will become senior adviser to Francisco Partners.

Merative’s products will be organised into six ‘product families’, including Health Insights; MarketScan; Clinical Development; Social Programme Management and Phytel; Micromedex; and Merge Imaging solutions.

Francisco Partners said its investment would provide Merative with significant resources and opportunities for new investment, acquisitions, partnerships, and growth.

Ezra Perlman and Justin Chen of Francisco Partners said: “Francisco Partners is excited about the opportunity to partner with the team and employees at Merative to help them achieve their mission, bringing technology and expertise to clients across healthcare through industry-leading data and analytics solutions.

“We appreciate IBM’s work in developing this business, and our ownership will help Merative drive crucial focus in executing on organic and inorganic growth strategies.”