Global investment firm Francisco Partners is acquiring the healthcare data and analytics portion of IBM’s Watson Health business, including Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex and imaging software, according to a Digital Health report Tuesday (Jan. 25).
“Today’s agreement with Francisco Partners is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and AI strategy,” said Tom Rosamilia, senior vice president of IBM Software, in the report. “IBM remains committed to Watson, our broader AI business, and to the clients and partners we support in healthcare IT.
“Through this transaction, Francisco Partners acquires data and analytics assets that will benefit from the enhanced investment and expertise of a healthcare industry focused portfolio,” he said.
Francisco Partners generally partners with technology and technology-enabled businesses since it launched more than 20 years ago. It has invested in more than 400 technology companies and have more than $30 billion in assets under management.
That includes healthcare technology businesses Availity, eSolutions, Capsule, GoodRx, Landmark, QGenda, Trellis and Zocdoc.
“We have followed IBM’s journey in healthcare data and analytics for a number of years and have a deep appreciation for its portfolio of innovative healthcare products,” said Ezra Perlman, co-president at Francisco Partners. “IBM built a market leading team and provides its customers with mission critical products and outstanding service.”
Related: McDonald’s Teams with IBM to Super-Size Drive-Thru Lane Tech
In October, IBM acquired McDonald’s McD Tech Labs to bring technological improvements to the drive-thru lanes at its fast-food restaurants and automate the order-taking process through the launch of Automated Order Taking (AOT) technology.
McD Tech Labs was introduced after McDonald’s purchased Apprente in 2019 with a goal of driving employee and customer-facing innovations, part of McDonald’s “Accelerating the Arches” strategy to advance technology across digital operations, delivery efforts, and drive-thru automation.
IBM’s acquisition of McD Tech Labs complements its work in artificial intelligence (AI) and developing customer care solutions with IBM Watson. The McD Tech Labs team joined the IBM Cloud & Cognitive Software division as part of the deal.
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