GE HealthCare finalizes $2.3B Intelerad acquisition
GE HealthCare has officially completed its acquisition of imaging software provider Intelerad.
The health technology giant announced on Wednesday that the $2.3 billion purchase (base price) had been completed. GE previously said that the acquisition was a reflection of its “continued commitment to cloud-enabled and AI-powered solutions.”
In Wednesday’s announcement, Roland Rott, GE HealthCare's president and CEO of imaging, shared his enthusiasm for how the move can further advance the company’s mission to improve radiology and data sharing workflows.
“Intelerad’s cloud-enabled software will support GE HealthCare’s imaging technologies and AI capabilities by simplifying complex workflows, and providing patients and customers with more precise, connected care across the continuum,” Rott said.
“Intelerad enhances our ability to deliver a cloud-first enterprise imaging platform at scale,” added Scott Miller, GE HealthCare's CEO of solutions for enterprise imaging. “Together, we are connecting imaging across care settings with interoperable, AI-enabled solutions that simplify operations, improve clinical insight, and help our customers deliver more precise, personalized care.”
It is estimated that Intelerad’s revenues during its first full year under GE will reach upwards of $270 million, 90% of which will be recurring. The company has indicated that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin will likely be in the 30% range as well, while a high-single-digit return on invested capital is expected by year five.
Jordan Bazinsky, CEO of Intelerad, believes patients stand to benefit from the deal as well.
“Joining GE HealthCare accelerates our vision for a more intelligent, connected imaging ecosystem. Together, we can harness the cloud and AI to break down longstanding barriers in healthcare, empowering clinicians with faster insights and giving patients a more seamless, precise care experience,” Bazinsky said.
When the acquisition was first announced back in November, leaders in the radiology community took note of the strategic move. Many at the time noted it was yet another indication of the broader shift to SaaS-led diagnostic platforms aimed at unifying the healthcare enterprise.
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In addition to her background in journalism, Hannah also has patient-facing experience in clinical settings, having spent more than 12 years working as a registered rad tech. She began covering the medical imaging industry for Innovate Healthcare in 2021.