GE HealthCare announced it agreed to acquire Intelerad, a medical imaging software provider, for $2.3 billion.
Chicago-based GE HealthCare plans to complete the deal in cash as it looks to add cloud-enabled and AI-powered imaging solutions. It says the deal furthers its aim to triple its offerings of cloud-enabled products by 2028.
Intelerad provides imaging software and digital enterprise workflow solutions. it has a significant presence in outpatient ambulatory care settings. The company offers cloud-first products designed for radiology and cardiology that span the inpatient and outpatient care settings.
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GE HealthCare said Inelerad’s outpatient footprint complements its own leadership in hospital-based imaging. Combined, the company expects these capabilities to create a more comprehensive, cloud-first and AI-enabled imaging offering. It expects this to span diverse care settings, from leading academic medical centers to expanding ambulatory networks.
According to a news release, the deal enables GE HealthCare to expand into a $2 billion-plus growth segment.
GE HealthCare expects Intelerad to deliver $270 million in revenues in its first full year of ownership. Approximately 90% of that registers as recurring, while it expects revenue growth in the low-double-digit range annually, with acceleration under GE HealthCare’s ownership.
Upon close, the company expects an immediately accretive impact to top-line growth and adjusted earnings before interest and taxes (EBIT) margin. It anticipates a slightly dilutive impact to adjusted earnings per share in the short term, inclusive of the impact of financing costs. The company plans to offset this with cost efficiencies. It anticipates a high-single-digit return on invested capital by year five.
The company expects to complete the acquisition in the first half of 2026.
Roland Rott, president and CEO of Imaging at GE HealthCare, said: “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.”
Jordan Bazinsky, CEO of Intelerad, said: “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.”
