IBM announced to sell healthcare data and analytics assets from the IBM Watson Health business to Francisco Partners, a leading global investment firm.
Though financial terms of the transaction were not disclosed but previous reports pegged the value at around $1 billion.
Francisco Partners will be buying Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings.
“The agreement with Francisco Partners is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and AI strategy,” said Tom Rosamilia, Senior Vice President, IBM Software.
“IBM remains committed to Watson, our broader AI business, and to the clients and partners we support in healthcare IT.”
Watson was one of IBM’s highest-profile initiatives in recent years and a big bet on the growing healthcare sector.
IBM currently has a market value of $108 billion, way behind its Cloud-computing rivals like Amazon and Microsoft.
In its fourth quarter, cognitive applications revenue, which includes Watson Health, came to $1.5 billion, a decrease of 2 percent year over year.
IBM Watson was one of the strategic imperatives under former CEO Ginni Rometty.
The current management team will continue in similar roles in the new standalone company, serving existing clients in life sciences, provider, imaging, payer and employer, and government health and human services sectors.