IBM to Buy Merge for $1 Billion for Medical Imaging Tech
IBM agreed to buy Merge Healthcare Inc. for $1 billion, to incorporate the medical companys imaging management platform with its Watson data analytics tool.
(Bloomberg) -- International Business Machines Corp. agreed to buy Merge Healthcare Inc. for $1 billion, to incorporate the medical companys imaging management platform with its Watson data analytics tool.
Merges shareholders will receive $7.13 a share, a 32 percent premium to Wednesdays closing price. The all-cash deal, subject to regulatory review and approval from Merges investors, is expected to close later this year, the companies said Thursday in a statement.
IBM is bolstering its health-care services business, centered around a new business unit called Watson Health Cloud. Finding new sources of revenue has become increasingly important as demand for older services and technology has waned, dragging down sales for 13 straight quarters.
Merges shares climbed 31 percent to $7.08, shy of the deal price, at 9:55 a.m. in New York. IBMshares was little changed at $156.76.
Merges shareholders will receive $7.13 a share, a 32 percent premium to Wednesdays closing price. The all-cash deal, subject to regulatory review and approval from Merges investors, is expected to close later this year, the companies said Thursday in a statement.
IBM is bolstering its health-care services business, centered around a new business unit called Watson Health Cloud. Finding new sources of revenue has become increasingly important as demand for older services and technology has waned, dragging down sales for 13 straight quarters.
Merges shares climbed 31 percent to $7.08, shy of the deal price, at 9:55 a.m. in New York. IBMshares was little changed at $156.76.
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