International Business Machines Corp. is checking out a potential sale of its IBM Watson Health service, according to individuals familiar with the matter, as the innovation giants brand-new chief executive transfers to improve the business and become more competitive in cloud computing.
IBM is studying alternatives for the system that could consist of a sale to a private-equity firm or industry player or a merger with a blank-check company, the people said. The system, which utilizes synthetic intelligence to help insurance providers, drugmakers and medical facilities manage their data, has roughly $1 billion in annual profits and isnt currently successful, the individuals stated.
Its brand names include Merge Healthcare, which evaluates mris and mammograms; Phytel, which assists with patient interactions; and Truven Health Analytics, which analyzes intricate healthcare information.
It isnt clear how much the business may fetch in a sale, and there might not be one.
IBM, with a market value of $108 billion, has been left as cloud-computing competitors Microsoft Corp. and Inc. skyrocket to evaluations more than 10 times higher. The Armonk, N.Y., company has stated its concentrated on increasing its hybrid-cloud operations while leaving some unrelated organizations.