IBM has been able to get rid of Watson Health. Investor Francisco Partners bought the healthcare data and analytics technology business. IBM did not disclose the amount for which the division was sold, but is said to be seeking at least $1 billion.
Watson Health offers analytics tools, AI software and other healthcare products. IBM founded division in 2015 and has since invested $4 billion in acquisitions to further expand Watson Health’s capabilities. Yet Watson Health still could not turn a profit.
In February 2021, IBM decided it was time to let go of Watson Health. Nearly a year later, IBM announces that the division was officially sold. The transaction is predicted to be completed in the second quarter of this year.
Clear next step
Francisco Partners, according to the announcement, is buying the Health Insights platform, a data warehouse that gives hospitals insights into issues such as increasing their operational efficiency. It is also buying some software products and product lines.
“Today’s agreement with Francisco Partners is a clear next step as IBM allows us to focus even further on our platform-based hybrid cloud and AI strategy,” said Tom Rosamilia, SVP at IBM Software. To that end, Watson, IBM’s AI division, will remain part of IBM.