IBM has plans to sell its Watson Health unit. The establishment aims to receive more than one billion from sales.
Last February, IBM initially planned to sell the Watson Health unit. In the previous year, the Watson Health division was rumored to earn more than 1 billion dollars yearly revenue. However, it was still not making a profit.
What is IBM’s Watson Health division?
Watson Health is a supplier of healthcare technology. The establishment sells tools to run analytics, AI-powered models and datasets, and various tools and technologies to facilitate research and creativity in the healthcare industry.
Their product assortment includes solutions that IBM acquired via acquisitions. Among them, the most prominent purchase was of Truven Analytics Inc. in 2016, bought for $2.6 billion.
Previously, IBM Corp had different plans. Last February, the tech company had planned to either sell the unit or undergo a public merger with a blank-check firm. Due to the latter possibility, the primary effort to make the sale was halted, but now the process has begun again.
The tech company intends to sell the unit for more than a billion dollars. This means that the sale would be made at a significantly lower rate, especially considering that the company invested around four billion dollars in creating the unit.
That said, the company will still enjoy a favorable position in the healthcare sector even after the sale is made. This is because its products, such as the software programs of Red Hat, will continue to streamline operations in the healthcare industry.
Who is helping IBM look for a buyer?
IBM is rumored to be working with BofA Securities Inc. to search for a buyer for the Watson Health division. Additionally, there are reports of a strategic buyer and several private equity firms who have been interested in acquiring the division.
The bids for the sale are planned to lock in this Tuesday, and the firm has high hopes of finding a buyer this month.