GE HealthCare to acquire Intelerad for $2.3B in cash

GE HealthCare (GEHC) announced it has entered into an agreement to acquire Intelerad, a medical imaging software provider for the healthcare industry, for a purchase price of $2.3B paid in cash. “As hospital and ambulatory care providers face increased demand for imaging and rising patient volumes, they are looking to simplify and unify their workflows,” said Peter Arduini, President and CEO of GE HealthCare. “Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions in radiology and cardiology into our portfolio of products and extend our capabilities into outpatient networks, enabling care teams to be more efficient, improve outcomes, and deliver precision care for patients globally. As a result, we expect to accelerate our growth in SaaS products and recurring revenues as we take another evolutionary step to grow into a healthcare solutions provider.” GE HealthCare estimates that Intelerad’s revenues in the first full year of ownership will be approximately $270M, of which approximately 90% is recurring, and Adjusted Earnings before Interest, Taxes, Depreciation and Amortization margin will be in excess of 30%. Intelerad revenue is growing in the low-double-digit range annually and is expected to accelerate under GE HealthCare in the combined entity. Upon close, GE HealthCare expects this transaction to be immediately accretive to top line growth and Adjusted Earnings Before Interest and Taxes margin. Inclusive of the impact of financing costs, GE HealthCare expects the transaction to be slightly dilutive to Adjusted Earnings Per Share in the short term, and the company plans to offset this with cost efficiencies. GE HealthCare expects a high-single-digit return on invested capital by year five. The transaction is expected to be completed in the first half of 2026, subject to customary closing conditions and regulatory approvals. GE HealthCare intends to fund this transaction with cash on hand and proceeds from debt financing.