International Business Machines Corp. is exploring a possible sale of its IBM Watson Health business, according to people familiar with the matter, as the technology giant’s new chief executive streamlines the company and becomes more competitive in computing. cloud.
IBM is studying alternatives to the unit that could include a sale to a private equity firm or an industry player or a merger with a blank check company, according to people. The unit, which uses artificial intelligence to help hospitals, insurers and drug manufacturers manage its data, has an annual revenue of about $ 1 billion and is currently unprofitable, according to people.
Its brands include Merge Healthcare, which analyzes mammograms and MRIs; Phytel, which aids in patient communications; and Truven Health Analytics, which analyzes complex health data.
It’s unclear how much the company can get in a sale and maybe none.
IBM, with a market value of $ 108 billion, has lagged behind while rivals in cloud computing Microsoft Corp. and Amazon.com Inc. they shoot at ratings more than ten times higher. The New York-based Armonk company has said it has focused on boosting its hybrid cloud operations as it exits some unrelated business.