Truven Health Analytics is acquired by IBM from Veritas Capital to improve Watson Health by integrating an extensive consumer based database.
IBM has purchased yet another business to improve its artificial intelligence system ‘Watson Health’. It announced plans to purchase Truven Health Analytics from investment company ‘Veritas Capital’ for an amount of $2.6 billion. The deal would probably close by the end of 2016.
After the disclosure of the news, the stock of the cloud-computing giant rallied by more than 5% in the trading session held on February 19, 2016. Truven is a leading analytics and cloud based medical data services provider with a significant consumer base of more than 8500 clients comprising of hospitals, government agencies, and insurance service providers. In addition, its rich cloud-based data set comprising of various types of outcomes, quality, cost and claims will probably be amongst the valuable assets of the New York based company.
After acquiring the organization, the dataset of IBM will have details from patients totaling over 300 million. This is the fourth organization acquired by IBM to improve the abilities of Watson Health Cloud. Previously it purchased Merge Healthcare, Phytel and Explorys. The four acquisitions have accounted for approximately $4 billion investment by the company.
IBM has been making significant efforts for advancing Watson, which is part of its $8 billion analytics business. An extensive consumer-based database would be integrated by Watson Health Cloud with advanced cognitive solutions for aiding the development of medical solutions using the Watson generated insights.
Furthermore, the company is making efforts for shifting in the medical sector towards value-based care from volume-based care. The value-based model is leveraging analytics and data to attain a deeper insight into the treatment’s specific components for getting a desired result in the late future.
The acquired organization would doubtlessly be adding to the efforts of the organization for driving growth in the late future. Watson is one of the significant initiatives for IBM as it shifts towards a provider of cognitive solutions from a software company.
The acquisition of Truven by IBM is the biggest deal the organization has signed in the three years after Gini Rometty became its CEO. During the course of her tenure, the Corporation has been focusing on investing money in the tech and data industries to help enhance its services and products related to the medical industry, especially Watson Health.
Watson is equipped with the capacity to analyze, interpret and even predict patterns in different types of data. It is viewed to be significant efforts of IBM for bouncing back from its recently suffered declines for the previous 3 years and 9 months.
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