GE HealthCare has officially confirmed an agreement in order to acquire Intelerad, the medical imaging software provider, for a cash consideration amounting to $2.3bn.
This move is intended to go ahead and support the objective of GE HealthCare to prominently increase its range pertaining to cloud-enabled products by 2028.
Intelerad, which was founded in 1999 in Canada, goes on to offer products that are intended for cardiology as well as radiology. Its cloud-first solutions are made use of in both outpatient as well as inpatient healthcare scenarios.
The presence of Intelerad in outpatient care is indeed seen as complementary to the established hospital-based imaging by GE HealthCare.
Interestingly, the combined product offerings are anticipated to increase the customer access and also offer integrated imaging solutions throughout numerous healthcare environments.
The business model of the medical imaging software provider, Intelerad is anticipated to speed up the transition of GE HealthCare towards a software-as-a-service – SaaS approach and to also raise the recurring revenue.
The global market when it comes to outpatient enterprise imaging goes on to represent quite a prominent growth opportunity that goes beyond $2bn for GE HealthCare.
Apparently, GE HealthCare forecasts that Intelerad, in all likelihood, will generate almost $270m in revenue in the first full year after the acquisition, with almost 90% of this being continuous.
The adjusted earnings before the interest, taxes, amortization margin, and depreciation are expected to pass 30%.
The revenue of Intelerad is said to be growing at a low double-digit annual rate and is expected to speed up in the combined company.
The completion of the transaction is mostly likely to happen in the first half of 2026, pending the regulatory approvals and, of course, the customary closing conditions.
GE HealthCare looks forward to financing the acquisition with a mix of cash on hand as well as debt proceeds.
Peter Arduini, the CEO and president of GE HealthCare, said that their acquisition of Intelerad is going to bring more cloud-enabled as well as intelligent solutions within the radiology and cardiology spectrum into their portfolio of products and also extend their capabilities across the outpatient networks, thereby helping the care teams to get more efficient, enhance the outcomes, and also deliver precision care for patients across the globe.
GE HealthCare is helped by the likes of Evercore, which is acting as exclusive financial advisor, and Sidley Austin as the deal counsel.
The exclusive financial advisor is UBS Investment Bank, and Skadden, Arps, Slate, Meagher & Flom is the deal counsel for Intelerad.