The General Electric Company (NYSE:GE) is selling off its healthcare business entities for over $1 billion and Veritas Capital has announced its interest in acquiring the business unit from the company. According to the latest news from CNBC, Veritas will purchase the revenue-cycle and ambulatory care, together with the workforce management software from GE healthcare technology assets if the deal closes in the third quarter of the year subject to terms and conditions of the agreement and the required regulatory approvals.
Veritas is searching for opportunities to invest in the healthcare sector in the key areas that embrace the emerging technologies such as the smart diagnostics, artificial intelligence (AI), and other key digital solutions coming up on the market.
The company intends to use the newly acquired business unit to further advance its product portfolio and continue developing its service provisions to improve the services offered to the patients as well as enabling the healthcare service providers to operate efficiently and effectively.
According to John Flannery, GE has been under pressure to reshuffle its operations to improve its stock price on the share market and as a result, the company has resolved to streamline its internal operations to focus on the key areas that are more lucrative.
According to GE, Veritas is the perfect company to take over its healthcare technology unit to advance its performance. Veritas is renowned for its essential knowledge and expertise particularly in the healthcare technology space.
The healthcare sector continues evolve each day and has lucrative opportunities. For instance, there is an urgent need to digitize all the healthcare systems in order to serve clients in remote areas across the globe. Veritas will currently work with the GE’s management team as they transform their diverse processes and systems into a separate unit.
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Both Morgan Stanley and Keval Health will act as the financial advisors for GE during the acquisition, while Veritas Capital will have Goldman, Sachs & Co. and William Blair & Company as financial advisors.