GE HealthCare (GEHC) has completed its acquisition of medical imaging informatics software developer Intelerad for a base purchase price of $2.3 billion in cash.
Intelerad's technology and customer base will extend GE HealthCare's reach into specialized clinics and ambulatory care environments, complementing the company's existing hospital-based imaging portfolio. Intelerad will operate as part of GE HealthCare's Imaging business and continue to serve customers in the U.S., Canada, the U.K., and Oceania, the firm said.
GEHC estimates Intelerad's revenues in the first full year of ownership will be approximately $270 million, of which approximately 90% is recurring, with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin in excess of 30%. Intelerad revenue is currently growing in the low-double-digit range annually, according to GEHC. The transaction was funded with cash on hand and proceeds from debt financing.
