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IBM to acquire Truven Health Analytics for US$2.6b

Thursday, February 18, 2016 - 23:00

[NEW YORK] IBM has agreed to purchase Truven Health Analytics for US$2.6 billion, its fourth health data-related acquisition in less than a year.

Closely held Truven provides cloud-based data management and analytics to more than 8,500 health-care clients, including hospitals, insurers and government agencies, the companies said Thursday in a statement. The deal is expected to be completed later this year, they said.

The acquisition of Ann Arbor, Michigan-based Truven will be International Business Machines Corp's biggest purchase in the three years under Chief Executive Officer Ginni Rometty. IBM has invested heavily in data and technology to improve its analytics offerings to the health-care industry, centered on its Watson Health business unit. Watson technology uses machine learning algorithms to provide prescriptive and predictive analyses. With more data, these algorithms work better and can provide more useful insights.

The success of Watson - which Rometty has called her moonshot - is integral to IBM's future as the company struggles to reverse sales declines for the past 15 consecutive quarters. The Armonk, New York-based company last year bought Merge Healthcare for US$1 billion to gain medical-imaging data and technology. IBM also acquired health-care big data analytics provider Explorys and population health technology seller Phytel.

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After integrating Truven's data from about 215 million individuals, IBM will have amassed various kinds of health- related information from 300 million patients, the company said.

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