IBM announced that it has agreed to acquire Truven Health Analytics for $2.6 billion to augment its Watson Health portfolio. Based in Raleigh-Durham, North Carolina and currently owned by private equity firm Veritas Capital, Truven is a leading provider of cloud-based healthcare data analytics to over 8,500 clients including US federal and state government agencies, employers, health plans, hospitals, clinicians, and life sciences companies.
Deborah DiSanzo, General Manager for IBM Watson Health comments: "With this acquisition, IBM will be one of the world’s leading health data, analytics and insights companies, and the only one that can deliver the unique cognitive capabilities of the Watson platform. Truven’s impressive team, extensive client roster, and expansive data sets complement Watson Health's broad-based team, capabilities and offerings. Together, we’re well positioned to scale globally and to build first-in-class offerings designed to help our clients apply cognitive insights in a value-based care environment.”
This is the 4th health data-related acquisition for IBM since it launched the Watson Health unit in April 2015. Truven's last twelve-month revenue and EBITDA as of September 30, 2015 is $599 million and $156 million respectively, resulting in a revenue multiple of 4.3x and EBITDA multiple of 16.6x.
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