The Big Blue is after every opportunity it sees in the healthcare.
IBM has announced the probable acquisition of Truven Health for a disclosed amount of $2.6 million. Reportedly, the prospective acquisition will bring around “200 million more live” to IBM’s arsenal of data.
General Manager, Deborah DiSanzo, of IBM Watson Health expressed an opinion on the acquisition that for the big data analytics, it is more beneficial and better if the company has more data. Through the acquisition of Truven, the $132 billion organization has strengthened the assembly of data pool of its own and assembled through acquisitions.
DiSanzo explained that through Truven, the North Castle, New York firm has achieved 200 million more records, which will be combined with the already existing 100 million records of the patients. The GM further added that the company could now integrate the sets of data, which may include greater accessibility, with electronic health records of medical health, genetics, and the likes from Truven and Phytel.
Last May, the tech corporation, for an unrevealed amount, bought a health management software business, called Phytel. At present, CEO Ginny Rometty has spent around $4 billion on the acquisition of health care related software companies. Apart from Phytel and Truven, IBM has spent around $1 billion while acquiring a medical imaging organization ‘Merge Healthcare’ last August. It had also previously acquired Cleveland Clinic spinoff, Explorys last April. The past trend of the business indicates that the recent acquisition holds colossal importance for it. The step can be crucial for its cognitive computer product; Watson.
Similarly, having earlier been integrated for years with IBM Cognos business and been, for the past 15 months, in a partnership with IBM’s Watson unit, Truven offers an extensive spectrum of the services of data analytics.
The work of Truven includes, but not limited to, ranking the U.S. hospitals in terms of improvement rate and the current performance. The company is behind the annual survey dubbed as “100 Top Hospitals.”
The deal is likely to bring a substantial number of clients for IBM as the acquired Truven Health has got around 2,500 employees across the country. It also has presence in Cambridge, Mass., sharing the same region where Watson Health is also located.
The acquired business has been reported to make a claim of having 8,500 clients, which include state and federal agencies, hospitals, and insurance companies. Big names like Cigna, CalPERs, Liberty Mutual Insurance, Hospital Corporation of America, and Newton-Wellesley Hospital has been in the list of the Truven’s client. Hence, DiSanzo strong expectations from the company are not unreasonable. She has said, “This combination of data, analysis, and insights will help healthcare providers, payers, and individual consumers.”
The step will ensure boastful returns for the Big Blue. Although it is important to note that not only New York based company is seeking opportunity in health. Rival Google and Microsoft have allegedly invested in healthcare to keep the profit coming from multiple revenue streams.
At the market close on Thursday, International Business Machines Corporation had a price of $132.46. The 52-week range of stock is $116.9 to $176.3.
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