GE HealthCare to buy medical imaging software provider Intelerad

Core Viewpoint - GE HealthCare has announced the acquisition of Intelerad for $2.3 billion, aiming to enhance its cloud-enabled product offerings by 2028 [1][5]. Group 1: Acquisition Details - The acquisition is valued at $2.3 billion (C$3.24 billion) and is expected to support GE HealthCare's strategy to expand its cloud-enabled product range [1]. - Intelerad, founded in 1999, specializes in medical imaging software for cardiology and radiology, providing cloud-first solutions for both outpatient and inpatient settings [1][2]. - The transaction is anticipated to close in the first half of 2026, subject to regulatory approvals [4]. Group 2: Strategic Implications - Intelerad's focus on outpatient care complements GE HealthCare's existing hospital-based imaging solutions, enhancing customer access and integrated imaging capabilities [2]. - The acquisition is expected to accelerate GE HealthCare's transition to a software-as-a-service (SaaS) model, increasing recurring revenue [2]. Group 3: Financial Projections - GE HealthCare projects that Intelerad will generate approximately $270 million in revenue in its first full year post-acquisition, with around 90% of this revenue being recurring [3]. - The adjusted EBITDA margin for Intelerad is expected to exceed 30% [3]. - Intelerad's revenue is currently growing at a low double-digit annual rate, with expectations for acceleration within the combined entity [4].