GE HealthCare announced that it has agreed to acquire Intelerad for $2.3 billion in cash, marking one of its most significant strategic moves to date to expand its cloud-first, AI-driven medical imaging capabilities.
The acquisition positions GE HealthCare to accelerate its growth in enterprise imaging across hospital, outpatient, and ambulatory care settings while advancing its broader precision care strategy. The company plans to triple its cloud-enabled product offerings by 2028, and the addition of Intelerad strengthens this objective by deepening its presence in rapidly expanding outpatient imaging markets.
Intelerad is recognized as a leading provider of medical imaging and digital workflow solutions, with a large footprint in outpatient and ambulatory care. Its cloud-native and cloud-enabled solutions span radiology and cardiology and are used across 1,500 healthcare organizations worldwide. By combining GE HealthCare’s imaging and AI portfolio with Intelerad’s enterprise cloud technologies, the integrated offering is intended to provide a unified, cloud-first imaging ecosystem that supports growing imaging demand and workflow complexity across care environments.
The acquisition is also structured to expand GE HealthCare’s reach into the more than $2 billion outpatient enterprise imaging market, which is expected to grow at a double-digit rate driven by global cloud adoption, the migration of healthcare procedures to outpatient facilities, and the rising need for integrated workflow solutions. Intelerad’s significant recurring revenue base and scaled SaaS model are expected to contribute to GE HealthCare’s incoming recurring revenue growth meaningfully.
According to GE HealthCare estimates, Intelerad will generate approximately $270 million in revenue in its first full year under GE HealthCare ownership, with about 90% of that revenue recurring. The company also expects Intelerad to maintain an Adjusted EBITDA margin above 30%. GE HealthCare projects that the transaction will be immediately accretive to its revenue growth and Adjusted EBIT margin upon closing. While the transaction is expected to be slightly dilutive to Adjusted EPS in the short term after financing costs, GE HealthCare plans to offset this through operational efficiencies. It anticipates achieving a high single-digit return on invested capital by year five.
Support: Advisor support on the transaction includes Evercore as GE HealthCare’s exclusive financial advisor and Sidley Austin as deal counsel, while UBS Investment Bank and Skadden, Arps, Slate, Meagher & Flom advised Intelerad.
KEY QUOTES:
“As hospital and ambulatory care providers face increased demand for imaging and rising patient volumes, they are looking to simplify and unify their workflows. 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.”
Peter Arduini, President and CEO of GE HealthCare
“Intelerad is an outstanding strategic fit and is a pioneer in cloud-based imaging software, with a strong portfolio of world-class solutions across care settings. By combining GE HealthCare’s medical device and AI competence at global scale with Intelerad’s enterprise cloud and imaging expertise, we will be even better positioned to meet the evolving needs of healthcare providers, simplify complex workflows, and drive digital innovation across the industry.”
Roland Rott, President and CEO of Imaging at GE HealthCare
“Joining GE HealthCare marks an exciting new chapter for Intelerad. GE HealthCare’s global scale and extensive relationships with key decision makers across hospital systems will fuel the expansion of our connected imaging software offering. Together, we look forward to advancing digital innovation in healthcare and delivering more integrated AI-enabled solutions that empower our customers to tackle their greatest challenges.”
Jordan Bazinsky, CEO of Intelerad
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